311

INTERNATIONAL TROPICALTIMBER COUNCIL

Distr.
GENERAL
ITTC-JC(XLV)/2 – Annex II
26 September 2011
ENGLISHFORTY-SEVENTH SESSION
14-19 November 2011
La Antigua Guatemala, Guatemala

META-EVALUATION OF PREVIOUSLY EVALUATED ITTO
PROJECTS
Lessons learned & good practices towards sustainable
management of tropical forests
THEMATIC SUMMARIESMarkku Simula, Hosny El-Lakany and Ivan Tomaselli

ITTC-JC(XLV)/2 Annex II
Page 2

Lessons learned & good practices from the ITTO Meta Evaluation towards
sustainable management of tropical forests

THEMATIC SUMMARIES OF EX POST EVALUATIONS(This document constitutes Annex II of the ITTO Meta Evaluation conducted in 2011)
This document summarizes the key common issues, lessons learned and good practices as identified in 92
ex-post evaluation reports of ITTO projects implemented in Africa, Asia and Latin America which werereviewed by the meta-evaluation team.
The purpose is to help project formulators and implementers in designing and executing future ITTO
projects.
ITTO’s Manual for project formulation, 3rd Edition, 2009 remains the main guidance for how projects should
be designed and proposals should be presented. This document provides additional information extracted
from previous projects to be as additional reference, as appropriate.
Summaries 1 to 12 are thematic, while summary 13 addresses aspects common to all projects with regard toproject design and implementation. Each summary includes the following sections: (i) introduction, (ii) key
issues, (iii) lessons learned, and (iv) good practices. The contents of the last two sections should be read in
conjunction as sometimes a lesson learned may also be interpreted as a best practice and vice versa.
The thematic summaries are:
1. Inventory, mapping, zoning and monitoring of the tropical forest resource
2. Demonstration areas, model forests and permanent sample plots and for sustainable
forest management
3. Protected areas and biodiversity conservation
4. Restoration, rehabilitation, reforestation and plantations
5. Community forest management and enterprise
6. Illegal logging and forest certification
7. Criteria and Indicators for sustainable management of tropical forests
8. Forest information systems
9. Reduced impact logging
10. Further processing, industry development and efficiency
11. Non-timber forest products
12. Markets, marketing and trade
13. Project design and implementation

ITTC-JC(XLV)/2 Annex II
Page 3
THEMATIC SUMMARY REPORT No. 1
INVENTORY, MAPPING, ZONING AND MONITORING OF THE TROPICAL FOREST RESOURCE1.

INTRODUCTION

Elaboration of regional and national forest land management plans starts with an overview of all land uses
and land use changes, of which forest is one important part. Zoning is made based on mapping of thedesignated areas to orient economic and conservation activities. Periodic forest resource assessment
provides information for monitoring on the extent and characteristics of the forests on national andsubnational levels that is necessary for policy design and planning of investments. There is also an
increasing need to integrate forest resource information with complementary biophysical and socio-economic
data for monitoring and planning purposes.
At the level of forest management unit (FMU), detailed mapping and periodic inventories are necessary for
estimating the characteristics of the forest and its production potential of various goods and services. Forest
inventory forms the basis of forest management planning, including zoning of the forest area for production,
protection and multiple-use purposes. Inventory also provides baseline information for monitoring of changes
in the extent and characteristics of the forest cover.
The development objectives of most projects in this area focus on the essential role of forest inventory andmonitoring as necessary tools for effective conservation and sustainable management of national forest
resources. The information on the resource is also related to data on production and trade in timber and nontimber forest products to monitor that the utilization of the forest resource is sustainable.

2.

KEY ISSUES

While technologies allow improved precision in assessing and monitoring forest resources, the needs for
information have increased covering also environmental and social aspects. This is associated with
forest management planning becoming more sophisticated, needs to monitor illicit activities in the forest
areas, and necessity to have reliable information on the role of forests in climate change mitigation andadaptation, as well as on other environmental forest services.



Engagement of a broad range of relevant stakeholders in policy development and forest monitoring also
brings new challenges for the accuracy, coverage and timeliness of information on forest resources.



Forest communities, landowners, forest industry and NGOs are major players in the forestry sector, andthey are often identified as beneficiaries of the inventory and monitoring projects. However, they are notalways meaningfully involved in the project design and implementation.



The private sector needs information on national and sub-national forest inventories and resource
assessments for planning their investments. In addition, enterprises are usually obliged to carry out
inventories for forest management planning in areas which they are managing. However, the quality of
their inventory work is not always adequate.

Climate change has become a factor with major implications for SFM, especially issues related to
REDD+. Resource assessments and inventories will increasingly have to include quantified informationon the existing carbon stocks and their changes for regular monitoring.

The same holds true with information on biodiversity, water, soil, and other natural resources. Several
indicators on these environmental services can be included in forest resource assessments andinventories but others may require specific baseline studies and tailored monitoring approaches.

Unauthorized activities, illegal logging and mining, and many other factors (often outside forest areas)
impact sustainable forest management and may need to be addressed in the project design on resource
assessment and monitoring.

Markets for legal and sustainably produced timber require that the origin of products can be traced tothe source where trees were harvested. This represents a new challenge for the accuracy of forest

ITTC-JC(XLV)/2 Annex II
Page 4
monitoring systems.
Lack of information or inconsistent and inaccurate data produced by different information systems is amajor problem for policy design and monitoring of progress towards SFM. Inconsistencies are usually
due to the lack of integration of various information systems in the country. A related issue isoverlapping geographic boundaries of administrative units, tenure arrangements, and ecological zoning
which calls for using Geographic Information Systems (GIS) but their establishment may need separate
projects.

Common other issues to address in resource inventory and assessment projects have included3.

‐

insufficient national inter-agency coordination and cooperation in land-use zoning at appropriate
institutional levels‐

lack of formal approval of land-use and zoning plans‐need for tailoring forest inventory in logged over areas, secondary forests and trees outside forests‐

in pilot projects there is a need for provisions for necessary follow-up action to cover the wholecountry‐

inadequate quality of mapping and zoning has reduced the reliability of forest management planning‐weak capacity in data elaboration and analysis‐

inadequate reporting on the status of the forest resources although data may exist‐

limited access to data by relevant stakeholders‐

absence of effective strategies for data dissemination and information sharing

LESSONS LEARNED

Project design

If relevant stakeholders are not involved in the planning of resource assessment, the results are unlikely
to meet their information requirements reducing project impacts and efficiency.

Good planning of the inventory design and implementation in pilot areas can lead to a standardized
methodology to be applied in the whole country.

Adequate Logical Framework Matrix is critical for effective project design and implementation ininventory and monitoring projects.

Project implementationPrevious projects might have already had enabled the country to develop a system for collecting,processing and reporting forest resource data, but had not addressed e.g. establishing baselines orsetting up a monitoring system. In such cases, new projects should fill the gaps in the existing system.



There is often a need to link forest inventory data with other biophysical data and socioeconomic
information (e.g. for elaboration of national natural resources development strategies, environmental
monitoring, or poverty reduction strategies). Many projects have failed or their effectiveness hasremained limited due to the lack of integration with other relevant data.

Climate change needs to be addressed as an integral component of SFM to ensure that the forest
sector can have access to the benefits from associated financing schemes. Considering these links at
the planning phase has improved project effectiveness and efficiency.

In the absence of previous adequate information on the forest resource, the inventory results can lead toITTC-JC(XLV)/2 Annex II
Page 5
revisions of forest policy and legislation. Such potential implications should be considered already in the
project design. However, the experience shows that policy change based on the project outcome canonly be possible if there is a political will to adopt necessary changes.
Lack of adequate expertise and specialized human resources in the Executing Agency to implement
forest inventory tasks has often hindered the delivery of key outputs.



If adequate training is not included in the project, sustainability of the inventory and monitoring activity
after the project is not ensured. Rotation of trained specialized staff should be carefully considered as it
can adversely impact project effectiveness and sustainability.

Institutionalization of national forest inventories and associated monitoring of forest resources has
proved to be necessary for the sustainability of projects in this field.

4.

GOOD PRACTICES

Project designForest inventory, mapping and zoning are long-term endeavors to be carried out periodically and theyrequire detailed planning, specialized human resources and adequate financing.

A detailed schedule is needed for inventory design, data collection, programming of fieldwork activities,
as well as data processing, analysis and reporting, allowing effective monitoring of the project
implementation.



Inventory should be stratified to elaborate results for different geographic levels and forest types. The
use of satellite images is usually necessary for stratification.

Including indicators on biodiversity, water and soil, carbon in forest inventories is necessary for planningand implementing of SFM but it requires additional expertise and resources.



Shortage of professional staff and expertise in key areas can require the use of external specialists.
Their tasks should include training of national staff to ensure sustainability of the project. Staff rotation
should be minimized during the project implementation period.

Over reliance on external inventory and assessment consultants can be detrimental for building up
national capacities and follow-up action in the long run. Adequate provisions in the project design should
therefore be made to develop national capacities. In this regard, close collaboration with universities
which have the expertise would be beneficial in training of relevant staff.

Participation of universities and research institutes can ensure further development of the forest
inventory methods and combining the physical forest data with socioeconomic information.

Strong involvement of the private sector organizations helps obtain information on user needs anddisseminate the project results.

Participation of other relevant stakeholders on national and local levels (i.e. the level on which the datais collected and information is produced) in the project design is useful as they would also be key
beneficiaries.

Project implementation
Institutional strengthening as an explicit element in resource assessment and forest inventory projects
can ensure broad impacts. In addition to the Executing Agency, other relevant institutions responsible
for mapping, land-use planning and zoning, and environmental management can be strengthened.



Analysis of inventory results needs to be related to data on timber production and harvesting of NTFPs
to assess sustainability of forest utilization.



Inventory data on non-commercial lesser-used species allows promotion of their utilization andmarketing.

ITTC-JC(XLV)/2 Annex II
Page 6
A network of permanent sample plots throughout the country can provide on-going monitoring data on
the detailed characteristics of the state (baseline) and change of the forest resource. Permanent plots
would also crucial for continuous development of the inventory methodologies. Re-measurement isperiodically needed and the results should be calculated and reported.

A baseline report on the status of the forest resource should be produced incorporating the data
gathered on socio-economic aspects, biodiversity, wildlife, and human impacts on forests, as
appropriate.

Annual budget allocations of the responsible Executing Agency ensure financing of the recurring costsof periodic forest resource assessments, re-measurement of the monitoring plots, as well as data
analysis and reporting. Sustaining adequate budgetary resources may have to involve engagement ofcollaborating agencies and other users of data.

An end-project workshop can validate the results and prepare for the next step. This is particularly
needed in pilot projects to ensure their broader impact and formally incorporate inventory data in SFM
planning processes contributing to project effectiveness and sustainability.

SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD 109/90 Rev.4 (I)

ASSISTANCE TO MODERNIZATION, RESTRUCTURING AND DEVELOPMENTOF WOOD-BASED INDUSTRIES IN CÔTE D'IVOIRE

PD008/95 Rev.1 (F)

MULTIPLE RESOURCES STRATIFICATION, MAPPING AND INVENTORY FOR
THE FIRST FOREST ZONE IN GABON - PHASE I
SPECIALIZATION PROGRAM FOR FOREST TECHNICIANS ON SUSTAINABLE
TROPICAL FOREST MANAGEMENT IN BOLIVIAPILOT PLAN FOR THE SUSTAINABLE MANAGEMENT OF 10,000 HECTARESOF SECONDARY FOREST IN SAN LORENZO, ESMERALDASINTEGRATED PLAN FOR THE CONSOLIDATION OF THE BAGRE HIGHLANDSBIOLOGICAL CORRIDOR, PROVINCE OF DARIENPROMOTION AND TRANSFER OF KNOWLEDGE ON SUSTAINABLE FOREST
MANAGEMENT MODELS TO TIMBER PRODUCERS

PD063/97 Rev.3 (F)PD049/99 Rev.2 (F)PD014/00 Rev.5 (F)PD023/00 Rev.4 (F)PD 85/01 Rev.2 (I)PD002/93 Rev.1 (F)PD195/03 Rev.2 (F)STRATEGIES FOR THE DEVELOPMENT OF SUSTAINABLE WOOD-BASEDINDUSTRIES IN INDONESIAINTEGRATED PILOT MANAGEMENT OF THE NGUOA II FOREST NORTH PHASE I: THE PREPARATION OF A MANAGEMENT PLAN
TO ESTABLISH A NATIONAL MONITORING INFORMATION SYSTEM FOR THE
EFFECTIVE CONSERVATION AND SUSTAINABLE MANAGEMENT OF
THAILAND’S FOREST RESOURCESITTC-JC(XLV)/2 Annex II
Page 7
THEMATIC SUMMARY REPORT No. 2
DEMONSTRATION AREAS, MODEL FORESTS AND PERMANENT SAMPLE PLOTS FORSUSTAINABLE FOREST MANAGEMENT

1.

INTRODUCTION

Demonstration areas and model forests are developed to help achieve sustainable forest management(SFM) by providing location specific information and experience that can be shared among stakeholders
through lessons learned. Permanent Sample Plots (PSP) often form part of the demonstration areas andmodel forests but they can also be established independently.
The concept of demonstration areas in tropical production forests stems from the early 1990s as a tool todevelop, share and disseminate good experiences in practical forest management. The idea was that
producing member countries would select one or more among the best managed forest areas for timber
production to further step up the quality of forest management and to demonstrate the feasibility of SFM inpractice. Some of these experiences have been evaluated and compiled in success stories providing asource of ideas for other forest management units (FMU) in the country and elsewhere.
A model forest is a related approach with largely similar objectives. In this case sustainable management is
implemented at a designated management area (often predominantly logged over forest) in which a numberof concessionaires are, or have been, operating. Some model forests are established for research;monitoring and training purposes rather than serving as demonstration areas. Some projects have been
primarily implemented as demonstration areas of integrated land use approach, focusing on conservationand sustainable use of tropical forests for various purposes at various scales and in different site types.
Both demonstration areas and model forests are applicable in forest concessions and community forests innatural and planted forests but they can also include formally protected areas.
Permanent sample plots are established to study forest ecosystems with respect to tree growth and canopy
structure, forest health and vitality, non-timber forest resources, biodiversity, soil and water conditions, andforest utilization. Both demonstration areas and model forests can include PSPs for monitoring and research.
PSPs are usually also a necessary element in national and FMU level forest inventories.

2.

KEY ISSUESThe formulation of demonstration and model forest projects has often suffered from an inadequately
structured logical framework for proper integration of activities and clarification of responsibilities of theparties involved.



It is not always understood that the establishment of designated areas for demonstration and model
forests through a project is only the first step. Adequate project exit strategies, including the parties’commitment to maintain these areas in the medium and long term, have not always been duly
considered in the project design stage jeopardizing the sustainability of project achievements.

A model logging concession can serve as an area for training, research and demonstration increasing
its strategic value but this can easily make the project highly complex to implement. Demonstration anddissemination have not always been successful in spite of being part of the original project strategy.

The accountability of concession holders plays a significant role to reach demonstration goals but it has
proved to be difficult to ensure in some projects.

Lack of provisions for statistical and physical coordination between the various inventory and plot
monitoring systems is an issue for many projects of this nature.



Poor accessibility of demonstration areas and PSPs has proved to be a critical constraint. Ensuring
access to sites in the long run is necessary to benefit through learning from the changes in the forest.

In some cases, re-measurement data from PSPs has not been compiled, analyzed and reported

ITTC-JC(XLV)/2 Annex II
Page 8seriously questioning the justification of investment in re-measurements.


The mensuration and taxonomic weaknesses of some databases have cast doubts on the credibility ofyield projections which are needed to establish future sustainable harvesting levels.

Ambiguity and inconsistency of the interchanging use of the key terms such as “forest sustainability”,“forest condition” and “forest health” can undermine the project’s strategic value. The objective of datacollection, reporting and assessment becomes therefore easily diffused. Different interpretations of key
terms and assessment indicators tend to limit possibilities to draw general conclusions based on themeasurement results.

The ultimate positive impact on forest management practices in demonstration areas and model forests
remains limited in situations where law enforcement is weak or lacking and the forest sector continues tobe dominated by a few powerful timber holdings aiming at short-term profitability rather than long-termsustainability.



Weak competence of government agencies and confusion about forest use rights can undermine any
efforts to improve forest management through demonstration areas and model forest projects.

3.

LESSONS LEARNED

Project designFour prerequisites need to be fulfilled to achieve the objectives of successful demonstration areas. (i)The forest manager, often a concessionaire, should be committed to further improve forest
management. (ii) The forest manager should allow and ensure documentation and analysis of the
management measures and their impact. (iii) The interested parties should be allowed to visit the forest
management unit and to access information. (iv) A dissemination and extension plan should be
developed and implemented.

Participation by the major stakeholders in demonstration projects needs to be provided starting with thedesign stage, then speeded up over the project cycle. Some of the timber companies may lack a senseof commitment, responsibility or urgency, while others such as the local forest communities may
participate willingly and constructively if awareness of benefits can be created and adequate incentives
provided.



Demonstration projects can increase awareness among the forest authority and the private sector on (a)how to implement SFM in practice, (b) the implications of environmental damage for the concessions,and (c) the need to cooperate with each other. Concession holders and contractors can be made awareof the fact that changes are not only necessary but also beneficiary for them as well.



The most noticeable effects of the introduction of SFM procedures in the demonstration and model
forest areas may include (i) improved water quality in downstream areas, (ii) reduction of timber waste
and damage to soil and residual forest growing stock, and (iii) improvements in road and otherinfrastructure design and construction (e.g., banks in skid trails to prevent run off and lowering of
maximum road gradients).

Reduced impact logging (RIL) experiments in model forests and demonstration areas, using groundequipment, can effectively confirm that harvesting under SFM is technically and economically feasible.
Results can demonstrate that residual stands after the second cutting cycle are promising for the third
cutting cycle while there has been no convincing evidence which would indicate loss of biodiversity from
species to genes.

Project implementationProject management and funding agencies should be aware that it takes a long time to reach the stageof a fully operational demonstration area even in sites which may at the first sight look to have a goodpotential for demonstrating sustainable forest management, including timber production. Planning for

ITTC-JC(XLV)/2 Annex II
Page 9additional phases needs to be considered in the initial project design by including respective activities.


The more complex a project design, the higher the risk that management cannot cope with it. For
example, while certain project sites are confined to one concession area, including the surrounding
areas of its influence, others may include many concessions, even straddling the boundaries. Thisimplies an unnecessary large number of actors in the project which tends to dissipate the attention ofproject management and commitment by actors.

When the project is large and very ambitious, it easily becomes unnecessarily complex. Such a situation
should be avoided. Complexity may also be inherent to an area which has been chosen to implement
the project (e.g. due to forest characteristics, illegal logging in the area, or other external impacts on theforest resource). To some extent, complexity can be addressed through a strong project management
structure and capacity as well as firm partner commitments.

When log supply and harvesting volumes are still ruled by diameter limits, harvesting volumes are notbased on accurate growth data related to the basal area. Permanent sample plots are needed to provide
the basis for establishing sustainable harvesting levels.

Continuous periodic monitoring of sample plots is necessary for generating information that can beeffectively used for achieving sustainable forest management.

Technical measuring difficulties and logistic obstacles to access plot locations can significantly add toproject costs and should be duly considered in the project design phase. Close integration of monitoring
activities and simultaneous execution of plot measurements can improve the project’s cost efficiency.

The project must show credible evidence that a growth and yield monitoring system is in place to ensure
the dissemination of credible results.



Sustainability of research forests can be difficult to achieve, hence their role to serve as a demonstration
area for sustainable timber production can be limited, especially where accessibility is a major
constraint.

4.

GOOD PRACTICES

Project designGood design of demonstration and model forest projects avoids unnecessary complexity, and is basedon firm commitments of parties, with clear exit strategies.

Good documentation of the project development process helps assessment of the proposal, in particularwith respect to involvement of stakeholders and the degree to which ownership of activities and outputs
is perceived.



Careful project design secures integration and spatial linkage of measurements and related activities
among all national demonstration projects.



Full commitment and proactive participation from those actors who should play indispensable roles
during the later stages of the project or even after project completion needs to be ensured during theformulation phase and maintained during the implementation phase.

Project implementation
Technical soundness, a critical factor for the credibility of project outputs, relies on the clarity of terms
used, as well as scientific methods in sampling, measurements and data analysis.

Assessment indicators can be linked with the ITTO Criteria and Indicators for SFM and relevant ITTO
Guidelines.

In PSPs for studying forest dynamics, measurements should go beyond tree height and diameter. The
added value of permanent plots is in the study of the spatial and temporal changes in the structure of

ITTC-JC(XLV)/2 Annex II
Page 10
the forest as well as species behavior during and after management interventions or disturbances.
Monitoring can include phenology, mortality, distribution of tree crowns, volume, stem diameter and age.
Permanent plots are also useful for monitoring of changes in biodiversity and soil and water conditions.


Data collection should continue in the same plots over a time series, and research is needed to refine
the methodologies. In PSPs, marking of trees for permanent identification and regular updating of
measurements are essential good practices.



After re-measurement, data analysis and reporting should be ensured.

The databases constructed should allow modeling the behavior of the forests in different scenarios offorestry and environmental parameters. Analysis and reporting are needed to draw the first lessons on
the behavior of natural forests and to guide the next measurements in study plots.

With proper management, a research forest can serve as a protected area and some plots can be
developed as demonstration areas even if they lack the context of a larger forest management unit.



Maintenance of demonstration plots in private concessions requires clear and firm commitment andsense of responsibility among company shareholders, management and staff, as well as other partners.



Effective support to local communities in model forests aims at developing practical approaches toimprove technology and livelihoods based on forest activities. In such projects due consideration ofsocio-economic aspects can ensure the applicability of results in local and other similar conditions.



Careful site selection is crucial for efficient and effective model forest project implementation.
Representativeness and accessibility are key criteria for site selection.

Even parts of the community forests and forests gazetted as Permanent Forest Estate can successfully
be developed for demonstration, especially when they are fairly easy to reach.



Variation in topography and forest characteristics offers excellent opportunities to demonstrate siteadapted silvicultural and logging techniques.



Cooperation with local communities is essential and the choice of other project partners is crucial for
successful development of practical approaches through model forests and demonstration areas.

SOURCESThis thematic summary is based on the ex-post evaluation report of the following project and other relevant
documents:
PD053/00 Rev.3 (F)IMPLEMENTATION OF A PERMANENT NETWORK OF STANDS DYNAMICSMONITORING PLOTS FOR THE GAZETTED FORESTS OF CÔTE D'IVOIREITTC-JC(XLV)/2 Annex II
Page 11
THEMATIC SUMMARY REPORT No. 3
PROTECTED AREAS AND BIODIVERSITY CONSERVATION1.

INTRODUCTION

Protection, conservation and enhancement of forest biodiversity are national and international priorities toensure the stability and resilience of ecosystems. ITTO’s mandate is to foster international cooperation in theachievement of sustainable forest management (SFM), including the maintenance and enhancement offorest biodiversity. ITTO has consistently sought to promote biodiversity conservation both in forests
managed for timber production and in protected areas. The Organization has promoted zoning of forests toenhance both production and protection functions. Field level projects have been important in capacity
building and designing national policies in biodiversity conservation.
In addition to national level efforts, ITTO’s trans-boundary initiatives have been valuable both in improving
the status of conservation on the ground and in translating the political commitments of participating
governments into practical operational collaboration. These projects have been especially useful incontributing to capacity building through sharing of experience amongst all levels of forest management andconservation organizations from the field to the line ministries. Assumptions that underpin the related forest
policy debate have also been tested in practice. The high political profile of trans-boundary conservation
projects has ensured that the lessons learned have fed into the policy development and educational
programmes.
Trans-boundary initiatives have special significance as many of the world’s most important remaining tropicalforests are found in remote frontier areas. Conserving and sustainably managing these forests is one of the
major global environmental challenges. In addition to government executed projects, ITTO also collaborates
with communities and NGOs in trans-boundary projects which have laid down the groundwork forestablishing a community-based conservation and development programs that can maintain the long term
integrity of national parks and develop effective models for managing trans-boundary protected areas.
The ITTO/IUCN guidelines for the conservation and sustainable use of biodiversity in tropical timber
production forests is a useful source of information for the design and implementation of projects related toprotected areas and conservation of biodiversity.
Ensuring forest health and vitality in ecosystems is a global conservation priority. Effective strategies are
based on an appropriate balance of strictly protected areas and effective biodiversity conservation in otherforests but it is difficult to define in practice. ITTO-funded projects are crafted within the framework ofsustainable forest management. Typical examples include: (1) field projects in areas where local populationis the determining factor for forest biodiversity conservation (buffer zone or inside the protected area); (2)main development alternatives for local population include forest management, restoration/reforestation,
harvesting of forest products and their processing, etc. (3) exceptional value of the forest biodiversity ishighly endangered, especially when forest genetic resources are valued for the future.

2.

KEY ISSUESDeforestation and loss of biodiversity take place in situations where there is lack of awareness of theimportance of different forest types for biodiversity conservation and sustainable livelihoods among local
populations. Market failures drive unsustainable utilization of forest resources, and other factors include
weak governance and insufficient scientific information on ecology, silviculture, harvesting and utilizationof tropical forests.

Protected areas often lack management plans or their implementation is ineffective – many protectedareas are only “paper parks”. Therefore, projects need to ensure the sustainability of forest ecosystems
through the implementation of a management plan for conservation and sustainable use, as appropriate.
Planning should be based on adequate studies and research on forest values, including on the resource
potential and the needs of local populations. Strengthening of institutional capacities is often alsoneeded.

ITTC-JC(XLV)/2 Annex II
Page 12

The trans-boundary aspects of flora and fauna of the forest reserves are particularly important for theconservation of migratory species. There is also a need to contribute to security in protected areas andbuilding up trust between the collaborating nations. These measures would be necessary also fortapping new revenue for conservation from the tourism potential in the participating countries.

Communities living adjacent to protected areas need to participate in decision making as usually
stipulated in the legislation. However, often communities cannot do so due to lack of awareness, skills,
and weak internal organization. In fact, it is often difficult to structure operational relationships between
communities and other stakeholders in and around protected areas. Socio-economic studies are only afirst step in building up effective partnerships which is a delicate time-consuming process that can easily
get bogged down.

In many national parks, illegal bush meat poaching may continue in spite of enhanced control measuresoften with external support. Control cannot be effective if culprits are not prosecuted and condemned in
the courts. Poaching is an additional security risk for park guards as well. Even if the law may allow
subsistence hunting for the inhabitants of the area, control of hunting tends to remain largely ineffective.



In some conservation areas, many externally funded environmental and social projects are operating
without effective coordination which limits their impacts. Cooperation and coordination would beparticularly needed for financing of critical activities for social development as resources of individual
projects are often insufficient. Development of alternative sustainable economic activities has proved tobe difficult and remains a key constraint for engaging local people in conservation.

Also in trans-boundary projects national authorities’ participation may lack operational coordination,although partner governments officially support the project. While some forestry authorities can provide
financial support during execution and may express willingness to assume larger responsibilities in the
future, others may remain uncommitted. Very few public agencies in participating countries makenecessary commitments to implement activities and bear their costs to maintain effective community
participation in biodiversity conservation in the buffer zones after the project has been terminated.

Project proposals may be attractively designed on paper but in practice, they may turn out to be too
ambitious considering fund availability, planned time period, working conditions and capacity to control
external factors. Project plans may also fail to foresee adequate activities to achieve the identified
specific objectives. The design too often requires NGOs as Executing Agencies to carry out actions thatare beyond their legal and professional competence such as establishing a protected area system on
government or private lands.



Although the idea behind some projects could be valid given the problem analysis that led to its
formulation, there is always a need for participation of beneficiaries and other stakeholders throughadequate consultation in the project formulation process. The project rationale is usually based on filling
existing gaps in the knowledge on the resources in order to elaborate management plans for the areas
under consideration. Success on the long term requires effective implementation arrangements of theplans prepared but such arrangements are not always considered in the project design phase.

3.

LESSONS LEARNED

Project designAchievement of biodiversity conservation objectives with indigenous people’s participation can be more
effective than through establishment of strictly protected areas. This, however, greatly depends upon (1)tangible results of sustainable management alternatives generated by the project; (2) population growthand ethnic diversity in the target areas; and (3) fulfillment of the government’s responsibilities regarding
infrastructure and social services.



Communication, awareness raising and training are fundamental prerequisites for change in local
customs but it takes time to have a true impact due to traditional resistance if the targeted change inbehavior is not by obligation.

ITTC-JC(XLV)/2 Annex II
Page 13Participative community management depends on the socio-cultural environment; the well-being of local
people is a precondition for success in conservation and engagement in productive activities. Most
conservation projects come with a restrictive initial agenda for communities but their members are
seldom entrepreneurial or interested in a change of life style. Externally imposed management of sacredsites and trees is also difficult to accept by communities.



Understanding ethnic diversity, local traditions and cultural and spiritual values in the protected area isnecessary as conservation measures are built on them.



Development of alternative sustained livelihoods activities within the framework of a forest conservation
projects requires a broad range of skills which should be provided through the project team.

Income generation needs to be addressed as a community or family business enterprise and not only as
a forest conservation project activity. Strategic partnerships can be elaborated to devolve local
community development activities to NGOs and other actors such as rural banking institutions or
extension organizations to ensure continuous support to alternative livelihoods.



Alternative economic activities can provide tangible impacts, particularly during the transition period
toward effective conservation management. There is no blueprint for their development which is a
stepwise process through trial and error for which communities need patience. Successful developmentof activities should also consider differences in gender priorities and participation.

Adequate resources may have to be invested in community development, even if it may not be the main
target of conservation. The results of past projects have shown that it has often been a key element forthe success.

Improvement of local livelihoods usually requires investments in infrastructure and economic activities
which can bring along increased risk for the clearance of forest land and illegal activities.



To address poaching in protected areas, zoning for hunting areas within the conservation areas is helpful
for improving control. Rotation can be applied when allocating hunting rights to have sufficient areas forfauna recovery. Special measures are often needed for management of large wildlife in order to avoid
animals getting accustomed to feeding on crops. Village committees can be useful for monitoring theirthreats.



Buffer zones, with a mosaic of multiple use areas around protected areas can provide sustained
protection while helping build up economic resources. However, expectations within a limited time period
should be realistic, particularly with regard to changes in community behavior.



Generating credible information is necessary for raising awareness among the decision-makers on theimportance of different types of forests and their biodiversity for the preservation of the environment andthe national economy.

Project implementation


If a biodiversity conservation project is implemented strictly according to its original operational plans
within a relatively short period, it may produce visible short-term outputs but there is a risk ofcompromising long-term impacts.

An adequate time period is needed for participatory processes to root down and for developing adequate
approaches and ownership by the beneficiaries and partners. For this reason a minimum of three-year
project duration should be planned.



By their nature project impacts tend to always evolve slowly and therefore interventions should remain
active for several years even after project termination. A follow-up mechanism can ensure that actions
can continue.

In trans-boundary conservation projects there is a risk of accumulated complexities due to the fact that
more than one country is involved which calls for early devising of adequate mitigation measures.

ITTC-JC(XLV)/2 Annex II
Page 14


It is very important for project teams to be based in the project area in order to be able to make frequentcontacts with communities and other local partners. This would ensure relevance, efficiency andeffectiveness of the project activities.



If the project was initially planned to be implemented by a government agency, but no progress could beseen, project implementation could be improved through subcontracting to a competent NGO while
recognizing their limitations to influence policy and change institutions.

Partnerships have proved to be an excellent concept to build up collaboration among participating
actors. However, operational partnerships with communities take time to establish and need a phased
process for capacity building.



Delays during the implementation can occur due to changes in national policy, regulations andinstitutional framework, which calls for adaptive project management.

4.

GOOD PRACTICES

Project designConservation projects need to be designed through a careful consideration of the best available
practices. These include: (1) empowerment of local communities’ leadership, through organizational
assistance, carefully promoting democratic approaches; (2) frequent but precise up to date
communication on the project’s objectives and implementation; (3) respect for local traditions, especiallyindigenous people’s customary rights and own rules; the latter can incorporate biodiversity conservation
elements; (4) facilitating contact between indigenous leadership with national or regional government
authorities; (5) recognition that some classical approaches to conserve biodiversity, such as
establishment of strictly protected areas, may not be feasible; (6) redefinition of limits of existing
protected areas when these include populated areas without biological diversity value; (7) land titling forindigenous people as a pre-condition to set aside protected areas; and (8) selection and training of
indigenous or local people as promoters of conservation goals and project results.

Conservation projects can succeed when they are inclusive and the appropriate target groups are
involved and benefit from the outputs. Well selected target groups (e.g. indigenous peoples, forest
communities) are the determining factor for successful biodiversity conservation projects. However, all
the relevant stakeholders should be consulted, including local and regional authorities, settlers and otherforest dwellers, community-based organizations, forest enterprises, contractors, civil society
organizations, etc.



Cooperation and partnerships with communities, forestry companies, protected area agencies, forestry
departments, international conservation organizations and local NGOs can be effective if based oncommitments of all groups. Establishment of mutual trust and understanding is a pre-condition for projectsuccess.

Project plans could make provisions for action to encourage local authorities, enterprises andcommunities to include biodiversity conservation activities in their forest management plans. Voluntarygroups active in this field can play a significant role in raising awareness on conservation if they canreceive professional advisory support, which the Executing Agencies could arrange.

Communities in conservation areasEffective conservation and sustainable management of forests requires that communities who live in andaround the forests can benefit from the project outcomes. Community stewardship is often a usefulstrategy in management of conservation areas.

Involvement of conservation NGOs and other civil society organizations in biodiversity conservation fieldprojects can be highly valuable as they bring new skills and perspectives, and often funds. They can also
help ensure that adequate attention is given to local peoples’ concerns.

ITTC-JC(XLV)/2 Annex II
Page 15


Measures are often needed to avoid unrealistic expectations on the benefits that relatively small-scale
projects can bring rapidly for community livelihoods in remote forest regions and conservation areas.



The Community Organizer approach has proved to be useful in training of rural promoters recruitedamong local farmers in integrated national park management and in economic activities. Refinancing ofpromoters’ work could be achieved for example by licensed collection of saleable goods, hence
motivating them to regularly visit their clients and pass information and offer training to them.

ZoningPark zoning needs an evaluation of biodiversity assets, assessment of traditional land use andclarification of use rights. Re-classification of forestland into a national park allows functional zoning,
including limited use areas within the park borders. A good planning process is consultative and its
outcome is negotiated with local authorities.



Declaration of a national park can mobilize national and international funds for its management.



Earmarking of buffer zones around sensitive areas is an important component of the protected area
management plans. Buffer zone management can be successful if plans have been developed with theparticipation of local institutional, non-governmental and rural stakeholders. For development activities inthe buffer zone, collateral financing from non-project sources could be raised to generate income andemployment, as well as to supply timber and non-timber forest products for local use and markets.

Trans-boundary conservation areas
In trans-boundary conservation projects a joint coordinating committee at a sufficiently high-level canensure that national-level commitments for co-operative action are implemented in practice. These
projects may need to develop specific multi-national financing mechanisms for sustaining post-project
activities for effective conservation.

Trans-boundary projects can be successfully crafted within regional initiatives, such as the Congo Basin
Forest Partnership, the Heart of Borneo Initiative, the Amazon Cooperation Treaty and others, topromote biodiversity conservation in production forests. However, overly complex implementation
arrangements should be avoided.



While the engagement of local people is important in all field projects, it is especially necessary in transboundary projects as they occur in remote forest areas which are often the home of marginalized groups,
ethnic minorities and populations that are amongst the world’s poorest and most forest dependent.

Research

Databases, research and studies developed by the project can be designed taking into account theneeds for the design of conservation strategies and forest policies.

Engagement of research and educational institutes is particularly useful for designing and implementing
scientific components of the projects, and for validation and dissemination of results and lessons
learned.

Project implementation and sustainability

Low levels of support over long periods are often more effective than heavy financial support delivered
over short time-frames. The entire cycle of project preparation, negotiation, implementation andevaluation contributes to the progress in biodiversity conservation and sustainable development inproject areas.

Many existing management plans of protected areas need revision by adopting an action oriented
approach, including effective cooperation arrangements with local stakeholders (institutional and rural)
for co-management, and for ensuring economic and social development.



Project offices located in the vicinity of remote conservation sites ensures the ease of work and effective
supervision, but enough computer facilities are needed to save staff time for field activities.

ITTC-JC(XLV)/2 Annex II
Page 16
Regular monitoring and reporting help smooth implementation of biodiversity projects.

Adequate funds need to be raised to continue data collection and to monitor changes in the conservation
forests after the project completion. Seeking additional financing from donor agencies is often necessary.



National public works departments can be engaged to maintain the main infrastructure (road/bridges) inthe project area for the benefit of adjacent communities.

Transparency and effective communication among project partners is a key for smooth joint
implementation and reducing unnecessary frictions. Clarity on roles and responsibilities is fundamental
for successful partnerships in conservation areas. Clear rules for accountability for each partner areusually necessary.

Conflict resolution committees can be useful in solving possible conflicts. A possibility to organize
extraordinary meetings is needed to address emerging problems.



An NGO member can be a useful partner for witnessing and providing international perspective as well
as specialist technical knowledge.

Biodiversity conservation projects need feasible exit strategies to ensure that project activities can besustained. Mobilizing funding from new sources and enhancing cooperation with local and internationalNGOs can be potential elements of such strategies.

SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD128/91 Rev.2 (F)PD026/92 Rev.2 (F,I)
PD026/93 Rev.1 (F)PD014/00 Rev.5 (F)PD017/00 Rev.3 (F)PD289/04 Rev.1 (F)MANAGEMENT, CONSERVATION, AND DEVELOPMENT OF MANGROVEFORESTS IN PANAMADEVELOPMENT OF METHODS AND STRATEGIES FOR SUSTAINEDMANAGEMENT OF MOIST TROPICAL FORESTS IN CAMEROONDEVELOPMENT OF BENTUANG KARIMUN NATURE RESERVE AS A
NATIONAL PARK - PHASE I
INTEGRATED PLAN FOR THE CONSOLIDATION OF THE BAGRE HIGHLANDSBIOLOGICAL CORRIDOR, PROVINCE OF DARIENCONSERVATION AND DEVELOPMENT IN THE NATURAL PROTECTEDAREAS SYSTEM OF TAMBOPATA (PERU) - MADIDI (BOLIVIA)
MANAGEMENT OF THE EMERALD TRIANGLE PROTECTED FORESTSCOMPLEX TO PROMOTE COOPERATION FOR TRANSBOUNDARYBIODIVERSITY CONSERVATION BETWEEN THAILAND, CAMBODIA AND
LAOS (PHASE II)ITTC-JC(XLV)/2 Annex II
Page 17
THEMATIC SUMMARY REPORT No. 4
RESTORATION, REHABILITATION, REFORESTATION, AND PLANTATIONS

1.

INTRODUCTION

Restoration, rehabilitation, reforestation and general forest plantations projects are undertaken for a varietyof environmental, economic and social objectives. The most common activities are those related torehabilitation of degraded lands and establishing productive plantations as well as to supply other forest
goods and services such as protective and amenity services.
Associated research projects, often with experimental nature, are essential to improve knowledge ontechnical and economic aspects and ensure establishment of enabling conditions for successful tree
plantation programmes (especially for high-value and indigenous species). Such projects can also help
establish and train national entities responsible for field activities and monitoring.
All ITTO–funded projects in this domain are intended to contribute to the realization of the ITTO Objective
2000 and the sustainable management of forest resources, taking into account relevant ITTO guidelines.
The projects must comply with the International Tropical Timber Agreement, particularly with Objective 1 (j)“To encourage members to support and develop industrial tropical timber reforestation and forest
management activities as well as rehabilitation of degraded forest land, with due regard for the interests oflocal communities dependent on forest resources.”
The ITTO Guidelines for the Establishment and Sustainable Management of Planted Tropical Forests
provide useful principles and recommended actions to help project formulators and implementers. Anotherimportant source of information is the ITTO Guidelines for the Restoration, Management and Rehabilitationof Degraded and Secondary Forests which specifically address the challenges of restoration of fragile andimpoverished land and degraded forests.

2.

KEY ISSUESHalting forest degradation which can lead to total loss of forest productivity with serious social, ecologicaland economic consequences both locally and nationally.

Replacing unsustainable forest use with sustainable management and utilization of forest resources withlong-term social, economic and environmental benefits for local communities and the nation at large. For
example, overgrazing leads to land degradation and the clearing of forests for pasture often acts as anincentive for irrational timber exploitation resulting in deforestation. This degradation process usuallyleaves behind a social legacy of poverty and loss of community rights due to increasing pressure on
land.



Diversification of the tropical timber supply by plantations due to dwindling production from naturalforests which is a major concern in most producing countries.



There is often little clarity about the long-term objectives of programmes and projects beyond planting
any kind of trees. Therefore, the choice of species may be inappropriate, reforested areas may not be
maintained, and when harvesting of mature trees starts, there may be no markets for products.



Local participation in the implementation of tree planting projects is often neglected or minimal resulting
in conflicts in the rights of the land to be planted and the use of forests. Projects may not meet the
expectations of the forest dwellers and adjacent populations and they may not benefit from the activities
realized.



Reforestation projects may be promoted with local participation but without due consideration of theneed to ensure the flow of economic benefits for the people who easily lose their interest in maintainingreforested areas if there are no tangible incentives.



Illegal logging may continue in the area in spite of on-going efforts to restore natural forests and toestablish new planted forests. Illicit activities may continue to be practiced because they generate

ITTC-JC(XLV)/2 Annex II
Page 18
employment and income for some community members while undermining the economic feasibility of
restoration and reforestation efforts.
Engaging local communities, farmers, the private sector, NGOs and other stakeholders in forest
restoration and plantation development and maintenance is often limited in government-led programs.



Inappropriate choice of suitable species, provenances and sites for reforestation is often due to lack ofadequate information.



Activities and results of projects are frequently inadequately recorded and therefore valuable
experiences cannot be disseminated.

In some afforestation projects the economic feasibility of plantations may be demonstrated, but
promotion with the private sector, the main source of expected future financing, is lacking.



Lack of economic information often makes it difficult to assess and promote restoration and planting
activities.



Projects have rarely pragmatic exit strategies beyond the project completion date and due to terminationof external support activities they may collapse.

3.

LESSONS LEARNED

Project designThe objectives of reforestation projects are often too ambitious, their duration is too short, and involving
local communities based on a participatory approach suffers from a lack of experience. Proposed
outputs are in many cases excessive in relation to proposed inputs. Multiple objectives and projecting
unattainable results should be avoided;

There is a tendency to make over-optimistic assessment of risks which can have negative effects
particularly on projects divided into successive phases. Project planners need to carefully assess what isachievable.



The concept of community development is a fundamental element of restoration and reforestation
projects in all the tropical regions even in cases where the population density is low.

Integration of agroforestry activities can be a decisive element for the generation of benefits to farmers
particularly, during the first years of the project.

Failure to achieve some objectives can be due to inappropriate, even erroneous identification andinvolvement of partners and beneficiaries.



In addition to community groups, small-scale nursery operators and private tree farmers can be a very
important component of the project strategy.

Projects implemented close to communities that do not benefit directly from project activities may sufferfrom unforeseen risks due to pressure from other land uses.



If prevalent, illegal logging needs to be addressed to ensure economic sustainability of forest restorationand plantation projects.

Project results tend to mostly depend on the ability to capture the interest of partners and ensure theirproactive cooperation. This is in turn dependent on their participation during project formulation.

When population density increases, tenure in planted forests becomes a real issue and needs to be
specifically addressed. However, this may fall outside the project scope and contingency plans toaddress this risk need to be considered from the outset.

ITTC-JC(XLV)/2 Annex II
Page 19
Project implementation


Geographically extensive projects can be faced with diverse demands by a large number ofstakeholders. Lack of active commitment on the part of some of them may become a major pitfall,leading to delays in the implementation of activities, a rapid turnover of unmotivated teams and delays indissemination and reporting. In regional projects of this kind, all the interests need to be incorporated in abalanced way.



If a project was initially planned to be implemented by a government agency, but no progress could beseen, implementation may be assigned through subcontracting to a competent NGO with track record on
successful field-level activities.



The success of a project depends on the high level of commitment and professional skills of the project
teams and the participating government forest administration staff. Necessary skills include bothtechnical and social aspects.

Training on the ground is usually highly needed. It should be mainly practical and training materials
broadly available. Study trips abroad, particularly to neighboring countries, can be valuable eye openers.

Project coordinator may spend a lot of her/his time managing the overall communication, logistical,
financial and administrative aspects of the project at the expense of its qualitative monitoring.



Monitoring and evaluation of project implementation, through self-evaluation workshops and stakeholder
meetings, contribute to smooth project execution.



Several projects have not created any dissemination mechanisms which limit project impacts. The
dissemination and exchange of experiences and results is a necessary activity in all restoration andreforestation projects. However, the effectiveness of dissemination is jeopardized if the results were notpublished or communicated to stakeholders.



Delays during the implementation could happen due to political changes in the country and other factors
such as security concerns and tenure issues.

Some forest restoration projects are implemented assuming a second phase would follow immediately.
Consequently, some intended activities may not be implemented. The project plan should haveprovisions for a situation in which the subsequent phase of support is delayed or may not come forward.

Mixed co-management between the local NGO’s in charge of organization and dissemination and thegovernment forest agency for technical assistance has been an excellent arrangement in many cases
but the experience shows that it requires clarification of partner roles and commitment to meeting
deadlines.

Training of community level trainers can be another success element in the project strategy. Training at
the basic level is the key. Collaboration between government agencies and NGOs in organizing training
improves impacts and efficiency.

Because subsequent funding is sometimes not obtained, actions initiated by some projects may have tobe halted half-way through, to the disappointment of rural beneficiaries who were the most adversely
affected by forest degradation. This can lead to loss of credibility and lack of continuing motivation
among all the actors involved.



Delaying the distribution of the planted forest management plan among stakeholders restricts its use andimpact.

Participation and partnerships


A forest planting project is often a good way to start a process of local participation, to make community
members aware of the sustainable forest management concepts and the importance of restoration andreforestation. Specific action is needed thereafter to convert this awareness into action.

ITTC-JC(XLV)/2 Annex II
Page 20


Sustainable timber production can be viable and realistic for local stakeholders only after necessary
steps have been taken for community development involving services, education, health care and otherdevelopments.



It has proved to be an extremely difficult task to find suitable livelihood alternatives in degraded areas
and make them adopted by people within a short project period.



A successful planning process at community level can include (i) a well-conducted consultation process,(ii) technical and economic viability of different production options; (iii) preparation of the forest
management plan and its swift approval by the authorities, and (iv) building up of stakeholders’commitment to implement the plan.



Before starting on project activities, a preparatory stage may be needed for observation and evaluationof the on-going practices and initiatives by the population which can be suitable for adaptation andintegration, rather than bringing something entirely new from outside which may not work in practice.



Identification of beneficiaries and partners is essential and preliminary workshops and meetings areuseful for this purpose. However, geographical characteristics, language barrier and communicationdifficulties have often led to partial understanding of the problems and possible solutions thereby
reducing full achievements of the targeted results. Building up an effective participatory process may
often require more time than the duration of the projectThe high cost/benefit efficiency of restoration and plantation projects is essential for success for local
community participation. The economic and social impacts of tree planting projects are usually positive
but need to be practically demonstrated to local people.



Decentralization and democratization can both pave the way for people’s own initiative in sustainable
development including forest restoration and plantation development.



Population has often difficulties to see the benefit link between degradation and reforestation. This isparticularly the case when unsustainable wood harvesting continues for basic livelihood while replanting
is being promoted. People should consider replanting more an economic than environmental activity to
get truly motivated.



Distributing seedlings free may lead to negligence in the handling and planting. However, sometimes
local people are so poor that even a token price for seedlings could not be afforded.



Local communities should understand the need to set up a local committee for forest protection andreforestation; this often greatly contributes to ensuring effective community participation in theachievement of the project outputs;

Women’s participation is particularly important in nursery operations, fuelwood collection, NTFP-related
activities and project management. Their leadership can often ensure that projects become sociallyacceptable and local stakeholders broadly engaged in implementation.



The social capital through solid community organization and good relations between the forest authority
and local populations as well as demonstrated results in the field are likely to lead to projectsustainability. This may be sufficient but formal monitoring and agreements on follow-up actions areoften necessary.

Restoration

In certain situations restoration of degraded forests may not be justified due to their limited economic
outcomes although it may be desired by community members. In such cases it is better to concentrateon plantations which can yield economic returns from wood and NTFPs.



Local populations can significantly contribute to restoration of degraded areas by enhancing low-cost
natural regeneration through protection against fire, uncontrolled grazing and illegal logging, but theyneed to be provided with incentives to make this happen. Good basic organization of the community has

ITTC-JC(XLV)/2 Annex II
Page 21been the main factor for success for the involvement of local people in restoration and plantation
activities.


Mobilization of adequate funds, technical assistance and human resources is usually needed forcontinuation of restoration and reforestation activities. This is a critical element of exit strategies for timebound projects. One source of financing can be revenue from seedling sales of a community-operated
nursery but the problem can be that people often are too poor to pay even a low price for seedlings. In
such cases other funding would be needed.

PlantationsIn plantation projects for production purposes, it is often questionable to choose species to be planted in
the absence of adequate future demand-supply studies. On the other hand, the available information isalways imperfect and the right decision becomes known only with hindsight.

Tree planting can be efficient and proceed according to the schedule but tending is often totally missing.
If economic incentives for tending cannot be provided, at a minimum, the government agency needs toprovide technical advice.



Demonstrating the potential of establishing high quality production plantations is not enough as further
action is often needed to fully convince local communities, farmers and the private sector on theireconomic merits.

Adequate field-level studies of economic, financial, social and environmental feasibility of forest
plantations are necessary to justify investment by the private sector, farmers, local communities or thegovernment.

Competitive industrial plantations in the tropics need state of the art technology, detailed surveys, andadequate research and development.

Good selection of species and sites, high-quality genetic material and improved techniques are key
ingredients of successful plantation projects. Forest investors prefer to have plant material of high quality(even if paying more) and well suited species for the sites.



If elaboration of the management plan for planted forest is completed only at the end of the project,
implementation cannot be ensured. There should be a clear strategy for how implementation can besupported in a systematic way.



Agroforestry activities are important in generating short-term income thereby ensuring farmers’participation. On the other hand, some agroforestry practices may lead to larger than optimal spacing ofplanted trees (but the trade-off is less important than ineffective community participation).



A local forest fund financed through a small tax on the sales of forest products, even though modest, cansupport critical activities related to forest plantations and restoration even in cases where the main
project support has terminated.



Private companies can be convinced to participate in the funding of follow-up activities with smallholders
and communities to increase wood supply for their industrial plants.

ResearchA research element is essential to systematize technical knowledge on selection of sites, species andprovenances, methods of propagation and maintenance of planted areas.

Studies and research in this area suffer from inadequate attention to the acceptance of technologies bycommunities, farmers and the industry thereby limiting adoption of improved practices.



Lack of relevant documentation on previous experiences at the project start and on obtained results after
project completion seriously limits sharing of lessons learned. Good experimental works are often being
carried out but very little is documented, analyzed and systematized.

ITTC-JC(XLV)/2 Annex II
Page 22The success of reforestation projects should be underpinned by good science, as well as the keennessof the scientists to pursue it.



Recording systems of technical activities are usually needed to provide a basis for systematization of theknowledge obtained. If there is no monitoring and recording system for activities and their outcomes, it
becomes impossible to verify and assess achievements in detail.

Technical research projects tend to be focused but there is also a need to carry out research on social
impacts. Results can be valuable for private organizations or NGOs involved in the promotion ofrestoration, reforestation forest production.



Selection of multiple experimental sites is often over-ambitious, albeit reflecting a desire for scientificperfection. Multiple experimental sites should be avoided, especially if remote and difficult to access, as
logistical and administrative monitoring conditions can weigh down effective management and hinder
sustainability;

It is always important to ensure maintenance of surviving plantations and appropriate silviculture
operations in general but, in research projects on planted forests, this is particularly vital. Research plots
may be cleared or burned by uninformed or misinformed local communities leading to a serious loss of
costly investments.



Close relationships are needed between the research (the species, plantation and progeny trials, etc.)
and the users of results (the private and state forest companies, forest communities, farmers, etc.).
Working closely with the potential users of the research outputs has the benefit of minimizing any
mismatch between research and operational activity.

Establishment and strengthening of a specialized unit for R&D can be a good strategy to ensure thesustainable use of the acquired knowledge.

Executing agencies and beneficiaries tend to consider that research and development projects aremainly the responsibility of external financial support. Without follow-up financial support, project outputs
are sometimes (if not often) ignored or neglected despite their high cost.



The minimum duration of forest research projects, which incorporate aspects of pure and appliedresearch, is around five years but often much longer. Therefore, long or medium-term technical support
may have to be ensured. Although a research project extension may be needed, additional funds may
not be requested. This reflects optimistic underestimation of the time needed to implement research
activities.

4.

GOOD PRACTICES

Project design and implementation
Good project preparation correctly identifies stakeholders, beneficiaries and partners to be actively
involved.



Activities should be demand driven; adequate control and decision mechanisms should be put in place;and permanent staff dedicated to the project should be ensured.

The preparatory phase of the project may take longer than planned but it is essential to ensure goodparticipation of local communities.



There is a need for careful selection of partners and adequate consultation to clarify expectations andcommitments during the planning stage. Participation of appropriate educational and research
institutions is essential to research and training activities carried out by the project.

As a proven practice, the project should reflect strategies in line with the national forest policy, taking into
account the specific local context.

ITTC-JC(XLV)/2 Annex II
Page 23


A good preparation process includes sufficient surveys and consultations with the stakeholders in orderto clearly identify the viability of SFM in the target area, requirements for approval of the forest
management plans, and the roles and necessary commitments of the stakeholders. A feasibility study or
pre-project study can be useful, particularly in larger projects or when the available information is notadequate for project design.

Adaptive implementation is a good practice. Changing conditions or errors in the project design may leadto adjustment of the project strategy. For example, the activities may have to be geared towards effective
demand rather than to increased supply. This could apply, e.g., to the establishment of a productive
nursery, demonstration plantations on a large scale, and promotion of native species.

Restoration and rehabilitation


Restoration projects involving enrichment planting can have significant impacts when:o guidelines on enrichment planting techniques are developed and used nationally; ITTO’s guidelines
for restoration provide a useful framework for such national guidelines.
o adequate reconnaissance surveys of the areas to be planted are undertaken to match species to site
conditionso accumulating knowledge is used in further development of techniques and practices;o establishing wildlife corridors and other approaches to improve connectivity in fragmented forests
hampered by timber harvesting and other land use practices

Over-mature seedlings that cannot be used in rehabilitation planting can be provided to schools andother community groups for use in amenity plantings.

The establishment of agroforestry plantations by local farmers can be a viable alternative economic
activity to pure tree plantations in the rehabilitation of some degraded areas. However, projects should
demonstrate the significant economic and social potential that agroforestry can have.

Projects involving tree plantingWhen designing a plantation project, management planning and timber harvesting should be considered.
Clear understanding of targeted markets would help avoid investment failures.



Dedicated seed collection/processing teams can be designated to collect and process seeds from SPAs,
preferably for use in all nurseries. Training in safe tree climbing is necessary.



Experience on raising seedlings should cover both local and exotic species for commercial plantation
development and restoration/rehabilitation of natural forests.

Efficient and safe methods of transporting seedlings are necessary, thereby enhancing survival rates.

A visual method for determining when planted seedlings require fertilizer such as nitrogen, phosphorus
and potassium (NPK) should be developed. Research is usually required to understand how much
fertilizer to apply and what is the most efficient way to apply it to obtain maximum benefit.

Tree planting projects can be successful when:o seed production areas are established and seed quality standards are developedo all the mother trees selected for the plantations and progeny trials are mapped and recorded, toenable easy identification;o the trials established for basic species selection, species and progeny trials consider both local andexotic species, are well maintained, and used for on-going research, learning and teaching;o nurseries are well maintained and are used for on-going research while producing planting materials;
o procedures for grading and selecting high quality seedlings are in placeo planting models successful at comparable site, climatic and economic conditions; are developed;ITTC-JC(XLV)/2 Annex II
Page 24o climatic and edaphic constraints are respected to avoid planting haphazardly and/or at the wrong
time;
o the status of soils (structure, drainage, fertility, degradation risks, etc.) covered by various types ofplantation is carefully studied and managed;o financial and economic analyses demonstrate that afforestation and restoration options, newsilviculture systems and planting models are cost-effective and economically viable to promote
community and private sector investment;o economic and financial analyses are carried out on different in order to determine the appropriate
cost structures;o economic and financial incentive mechanisms are created for the benefit of local communities and to
attract the private sector;
o appropriate technical support and supervision by the government are provided to ensure high rates
of seedling survival in planting by the private sector and communities;o an extension strategy is an integral part of the project including dissemination activities including onsite training activities;o staff and students continue to be trained;o support is provided to research into further developing and refining innovative silviculture systems
and planting models for restoration of degraded forests and lands;o good models of public-private partnership are identified which could be replicated ;o risk assessment considers externalities such as the availability of appropriate planting stock andplanning of alternative planting schedules in order to avoid delays in field activities;
ResearchPartnerships between universities, research and development institutes, NGOs and local communities
are useful to ensure demand driven research and sharing of responsibilities.



Research projects often need to be complemented by targeted activities to raise awareness among
beneficiaries and decision-makers, technical training and extension.

Preparing and disseminating reports on successes and gaps in the existing knowledge is a good practice
to avoid repeating costly experimental or demonstration plots which have already failed.

Transfer of technology can involve publication of scientific research results, technical and other reports,
training courses, handbooks and brochures as well as participation in regional and international
conferences.



A combination of state-of-the-art technology and local R&D efforts with participation of local woodprocessing companies is often an appropriate approach to develop technologies for value-addedindustry utilizing tropical plantations.



The continuity of research projects can be ensured through the appropriate promotion of their results andthrough elaboration of new follow-up projects.



A complete record of project activities, including monitoring and evaluation of positive and negative
outcomes, helps replicate success and avoid repeating failures. A research and development unit may
be necessary to compile and disseminate the information.

Strengthening of networks linked to the project before and after its completion, as well as linkages withother forest organizations working in the same field may be necessary for mainstreaming of project
results.

ITTC-JC(XLV)/2 Annex II
Page 25
ParticipationIn order to find solutions to increasing environmental degradation related to deforestation and to combat
forest degradation, projects need to particularly focus on community development and other social
issues related to SFM.

Good practices for awareness raising and organization of community members include (i) building on
traditions of working in groups and through communities’ own organizations, and (ii) informing people
that their livelihood depends on the protection of vegetation and that tree planting is a good, often theonly, way to improve their livelihoods in degraded areas.

Participative rural appraisal and broad-based campaign to promote reforestation are often the key tosuccess. Community participation can be best organized through formal committees which ensure
systematic approach by the community to development.



Engaging local communities living around the experimental sites and placing trust in local forest owners
can reduce the risk for destruction of planted plots. Incentives may have to be provided to mitigate the
risk.



Clear and transparent rules and mechanisms for sharing of benefits between the government, thecommunity and other actors undertaking forest plantation are often necessary and need to be clearlycommunicated. Benefit sharing through contractual arrangements could be better than throughregulatory rules.



Demonstration of the economic and social impact of tree planting projects to local people is a feature of
successful projects.

Sustainability
Measures to ensure the uptake of the outputs and continuation of some project activities after completion
is often necessary.

Periodic assessment of experimental plantations (including assessment of nurseries, propagation andirrigation systems) is necessary to determine silvicultural priority activities that should be continued
together with long-term maintenance and protection of planted areas.

The acquired knowledge and results need effective dissemination on websites and through other meansin order to share and exchange information with other research or support organizations which could
potentially contribute to future initiatives in the field.

Assessment of policy implications of pilot and demonstration projects is necessary for preparation ofadjustments in the policy and institutional framework to ensure mainstreaming of the project results.



A forestry fund can be the determining factor for sustainability of reforestation activities.

ITTC-JC(XLV)/2 Annex II
Page 26
SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD 68/01 Rev.2 (I)PD 69/01 Rev.2 (I)TRAINING IN REDUCED-IMPACT LOGGING IN GUYANA
IMPROVED AND DIVERSIFIED USE OF TROPICAL PLANTATION TIMBER IN
CHINA TO SUPPLEMENT DIMINISHING SUPPLIES FROM NATURALFORESTS
PD185/91 Rev.2 (F) II SUSTAINABLE FOREST MANAGEMENT AND DEVELOPMENT INPENINSULAR MALAYSIA - PHASE II
PD026/93 Rev.1 (F)DEVELOPMENT OF BENTUANG KARIMUN NATURE RESERVE AS A
NATIONAL PARK - PHASE I
PD018/94 Rev.1 (F) II PARTICIPATORY FOREST DEVELOPMENT IN THE ALTO MAYO REGION FOR
THE SUSTAINABLE MANAGEMENT OF MOIST TROPICAL FORESTS
PD013/96 Rev.1 (F)
MULTIPLE-USE MANAGEMENT IN THE MACAUA NATIONAL FOREST BASEDON RUBBER ESTATES - PHASE I: DEVELOPMENT OF MASTER PLAN TOSUPPORT COMMUNITY ORGANIZATION
PD017/97 Rev.3 (F)PILOT PROJECT FOR THE REFORESTATION AND REHABILITATION OF
DEGRADED FOREST LANDS IN ECUADOR
PD044/99 Rev.2 (F)IMPLEMENTATION OF A MANAGEMENT PLAN BY THE CHIQUIACA ANDOROZAS COMMUNITIES IN TARIJA, BOLIVIA
PD051/99 Rev.2 (F)SUPPORT TO GRASSROOT FORESTRY PROMOTION INITIATIVES IN THE
YOTO AREA
PD041/00 Rev.3 (F,M) MODEL DEVELOPMENT TO ESTABLISH COMMERCIAL PLANTATION OF
DIPTEROCARPSITTC-JC(XLV)/2 Annex II
Page 27
THEMATIC SUMMARY REPORT No. 5
COMMUNITY FOREST MANAGEMENT AND ENTERPRISE

1.

INTRODUCTION

Community Forest Management (CFM) and Community Forest Enterprises (CFE) have gained considerable
grounds as an approach to sustainable forest management in the past two to three decades. The concept ofcommunity development appears to be a fundamental part of almost any SFM related project. The main
objectives and to some extent achievements have included: (1) empowerment of local communities’
leadership, promoting democratic approaches of CFM/CFE projects, including women’s participation; (2)adequate information to local people about SFM and its benefits; (3) clarification and recognition of rights oflocal people over forests and forest land; (4) respect for local traditions, especially indigenous people’s
customary rules; (5) assisting local or indigenous leadership in contacting and consulting with national orregional government authorities; (6) training of indigenous or local people and identification of champions offor CFM/CFE promotion; (7) clear up-front arrangements for sharing of profits and other benefits from forest
activities for the community and its members, and (8) strengthening of community organizations. Two mainprerequisites underline successful CFM and CFE: (i) clear definition of land tenure and forest access rightsand (ii) equitable sharing of expected benefits.
Most CFM and CFE projects have common support elements: (1) natural forest resources management
and/or reforestation; (2) direct long-term social and economic development of communities through SFM andassociated productive activities involving local poor farmers and indigenous people; (3) rehabilitation of
degraded forest lands; and (4) management of buffer zones around protected areas.
Research and demonstration activities are often part of larger CFM/CFE projects which may include:
implementing approaches and technologies for the socially, economically and ecologically sustainableutilization of forest resources in compliance with the national laws; and diversifying the tropical timber supply
in the regional, national and international markets. Many projects include community based reforestationplans for production of timber and NTFPs, rehabilitation of degraded forests, as well as agro-forestry
components.
The expected outcome of CFM/CME projects may include a fully operational management plan being
implemented by the community enterprise, a strong and consolidated community forest enterprise; andimproved income and employment for community members.
ITTO has been active in supporting CFM/CFE projects in its member countries since its inception. In 2008,
the Thematic Programme on Community Forest Management and Enterprise was launched as a strategic
tool to enhance on-going efforts.

2.

KEY ISSUESThe status of land tenure and property rights is often not well defined in the community-based project
proposals although they are critical project elements. When population density increases, land tenure
becomes a serious issue and may need to be addressed separately.



Although improvement of livelihoods and mitigation of climate change are frequently stated as ´project
benefits in proposals, they tend to be mentioned as catchwords without further elaboration.

In many cases the project concept and strategy are not extensively and comprehensively discussed withthe local population before the project approval.

A great deal of the active participation of the community members in plantation establishment or otherfield activities is achieved through direct payment (e.g. money or food) and only exceptionally by meansof voluntary work. Not all members of the communities are interested in the project or in its outputs and,as a result, their participation varies.

In several cases trying to meet short-term economic needs of local people has been through suchactivities as promoting growing new crop varieties, agroforestry, cultivation of NTFP species, and rural

ITTC-JC(XLV)/2 Annex II
Page 28
extension. While these alternatives help local people, they may diffuse stakeholder interest in SFM ofexisting forests and development of tree planting.
Social aspects such as stimulating active participation, improving environmental and forestry awareness,promoting community organization and community enterprises as well as training, are usually needed.



Decentralization and democratization pave the way for the people’s own initiative in sustainablecommunity development. However, their appropriate introduction needs careful consideration of how
these principles can be promoted in the national and local contexts.



CFM projects may be instrumental in providing diverse important benefits to the communities (including
roads, medical facilities, higher crop productivity or facilitated contacts with authorities) but often fail toeffectively improve community incomes which may jeopardize investment in planned forestry activities.



Poor and illiterate rural people, living in agriculture-forest frontiers, may well understand and accept theneed for sustainable forest management and forest plantations, but have no economic possibilities topursue the required actions without financial assistance to sustain or expand project activities



Economic viability of CFM/CFE activities continues to be a key issue for most projects in this field.
Emphasis in the past has been given to social and environmental aspects without due consideration ofprovision of tangible economic benefits and other incentives to community members.



In many countries, failure in CFM/CFE development has been attributed mainly to the lack of clear
policies and support from the government agencies that may not approve the management plans, grantrights on the forests to the community, or provide any post-project support to the activities started.



Ecological zoning practiced in many countries may not provide an appropriate framework for forest
management planning which can extenuate problems in the approval of plans.

3.

LESSONS LEARNED

Project designThe potential of local communities to implement forest management and conservation is enormous, if
well directed. The local people’s response and the maintenance of their interest to participate in projectsof this kind, despite the occasional absence of practical results, is a clear indication that the community
forestry approach, if coupled with adequate technical and economical inputs, can be successful.

The key prerequisites for a successful planning process at community level aiming at producing a forest
management plan are: (i) careful assessment of economic and environmental viability of different
production options, (ii) the scope and quality of the plan which complies with the national regulations
enabling its rapid approval by authorities and thereby swift start-up of its implementation, and (iii)
community’s commitment to implement the plan for its entire validity period. There should be at least
some kind of evidence that these prerequisites exist or can be met before starting a planning process.
Some CFM projects have not been implemented due to unresolved legal matters, loss of commercial
value of the species that originated the project, and as a consequence of a government and community
decision.



The main problems of community forest management projects in or around protected areas include: (1)location of project sites in strictly protected forests without a previous analysis of other available options;(2) absence of economic studies that could justify the feasibility of CFM; (3) low quality of forest
management plans; and (4) lack of consideration of economic alternatives such as progressive
substitution of natural forest utilization by planted forests, ecotourism, compensation for environmental
services, etc.

Some CFM projects are located in protected areas, often inside forest reserves, buffer zones or acorridor between two protected areas. There is a risk that conflicting interests may lead to unrealized
outcomes.

ITTC-JC(XLV)/2 Annex II
Page 29


Not all members of local communities living in agriculture-forestry frontiers are willing or interested toparticipate in forestry programmes. Often most of them prefer to make their living out of agriculture or
shifting cultivation, extensive grazing or other activities. This needs to be considered in project design.

Women development can be an important objective in CFM projects. Women benefit directly from someof the activities such as forest nurseries, food processing and NTFP production but, more important, theyclearly play an undisputed and respected leadership role regarding project objectives. Strong womenleadership is also an added outcome of many projects.

In spite of relatively well done forest inventory, forest management plans may lack all required
characteristics of a real management plan, even though they may apparently comply with the national
regulations. Such management plans demonstrate excessive emphasis on short term aspects, such as
Reduced Impact Logging (RIL) practices, but give almost no consideration to long-term planning,
including a sustainable cutting cycle and harvesting intensity, road design and construction, silvicultural
practices, biodiversity conservation, market for the planned products, costs and economic analysis. RIL
is obviously necessary but it is not sufficient to achieve SFM.



Many projects have failed in giving adequate economic consideration to the productive activities
proposed to the communities. As for any other economic venture, CFM/CFE proposals have to bepreceded by a feasibility study based on technical forestry matters as well as on a sound cost-benefit
analysis. Income generation needs to be addressed as a community or family business enterprise andnot as a project activity.

The ecological sustainability of CFM projects has proved difficult to assess. Some project strategies
assume that a natural forest managed for production by a community, is also effectively conserved
compared to a legally strictly protected forest where it may be impossible to avoid illegal logging due to
weak enforcement. Every case should be carefully analyzed in this respect.



Most CFM/CFE projects have no quantified baseline information on the pre-project situation. This makes
it very difficult to evaluate project impacts; especially those related to natural forest management,
restoration of degraded forests, tree planting, and agroforestry activities.



Project sites should not generally be located in very distant areas. As ITTO projects are intended to be
demonstrative, they should be developed in readily accessible areas, where possibilities for successexist and where the ground-level results can be seen.



Lack of trained human resources at several levels and cumbersome bureaucratic procedures frequently
lead to significant delays in decision making and implementation. This can be associated with the lack ofinterest, commitment and capacity of other line ministries to support project implementation.

Study tours to community projects in other countries in the region are extremely useful in informing
community leaders and other project participants.

Project proposals on NTFPs need explanation on the species used, economic feasibility and social
livelihood dependence to enable assessment of meeting the project objectives. Proposals focusing on
management of NTFPs that fail to show relevance to SFM should be reoriented within the context offorest sustainability and the ITTO Objective 2000.

Research-to-impacts should be outcome oriented. If the focus is on outputs, only l under-achievements
occur. Research should consider that new technology has to result in livelihood and income positive
impacts and that accessible demonstration plots are most useful.

Technical and market knowledge is necessary but not sufficient condition for success. Other criticalelements may include entrepreneurship development, micro-credit facilities, market linkages, but these
may be difficult to integrate in targeted CFM projects.



In protection forests, benefits through community management are often largest in sustainable use of
buffer zones and biological corridors between protected areas.

ITTC-JC(XLV)/2 Annex II
Page 30
Project implementation

Awareness raising and organization of community members is often unproductive unless there is alreadya tradition of working in groups. However, it is possible to make people understand that their livelihood
depends on forest protection, tree planting, and finding suitable alternatives to be adopted within a shortperiod. It can, however, be difficult for local beneficiaries to accept that they must work without being
paid for a long-term objective, even when they recognize that it is for the benefit of the community.

The generation of project outputs and results does not necessarily imply achievement of development
objectives. Failures in this respect can be due to: (1) project design errors, especially overly ambitious
objectives related to available time and resources and inappropriate strategy; and (2) low quality of somekey products, results and outputs, such as forest plantations that die after planting or grow below
expectations and management plans that are useless and cannot applied. A clear symptom of theunsuccessful achievement of development objectives can be the abandonment of essential forest
activities such as planting and replanting, nurseries, weeding, pruning, thinning, and fire control as soon
as the project ended or when resources to pay for services became unavailable.



A serious problem in CFM projects involving natural forest management has been the low quality offorest management plans.



Local communities understanding of the need to organize themselves through a forest committee isessential in order to ensure their full participation in the achievement of project objectives.



The time constraint of project implementation is often the cause of serious mistakes. Usually a full year isnecessary for a CFM project to become fully operational (The second year is used essentially to initiate
operations and training. Therefore, it is impossible challenge for any forest project to produce significant
additional income for the community (apart from wages) before the end of the third year. In tree planting
and other restoration activities projects, the minimum time period is usually five years.

In many community-managed reforestation projects there have been serious errors in site and species
selection. Maintenance and silvicultural treatments (weeding, fertilization, thinning, pruning, and fire
control) have sometimes been lacking, especially after project completion. Most forest nurseries areabandoned immediately after projects ended. The main reason for the halting project activities has been
the “lack of financial resources”.

Two major reasons can lead to failure of CFE wood production and processing projects: (i) thecommunity around the factory cannot simply be changed from primary and subsistence farmers toindustry operators; and (ii) the technology introduced may not be compatible with traditional livelihoods.



Implementation of sustainable livelihoods activities within the framework of a community managed
conservation projects requires a broad range of skills that may not be present within the project teams.



It is very important for project teams to be based in the project area in order to be able to make frequentcontacts with communities and local partners and thus ensure relevance of the activities.



Support to livelihoods activities can often be channeled through specialized local NGOs as medium andlong-term partners of the Executing Agencies, using a focused village planning and corresponding
business plans.

Sustainability


Substantial contribution to livelihood improvement of the poor communities as well as to forest protection
and biodiversity conservation are critical for sustainability, particularly if the results can be sustained
without outside subsidies and are replicable. Without provisions for sustainability upon the conclusion of
the project the local population will be disappointed.



Economic sustainability must be addressed separately for natural forest management projects and forforest plantations, as their realities are quite different.

ITTC-JC(XLV)/2 Annex II
Page 31

Sufficient time is needed for social processes for developing adequate approaches and ownership by thebeneficiaries and partners. For this reason a minimum duration of three years should be planned for
CFM projects. The initial plan should already give consideration for how the follow-up activities can besustained.



Successful CFM and CFE models may also serve as a basis for development of the legal framework(new forest law and regulations) especially as related to participation of the local communities in thedecision making process related to the use of natural resources.



Strong leadership and competence of the technical team and the preparedness of the recipient CFE areimportant for project sustainability. Strong commitment and good professional skills of the forest
administration staff are also required.



Access to financial capital often leads to success, otherwise CFE projects easily get bogged down withthe first difficulties in business development and the accumulated social capital is lost.

4.

GOOD PRACTICES

Project designAn early clear commitment by the government enables effective development of community forest
management and enterprises.

Participatory planning can be successful if based on the priorities and needs of communities and rely on
bottom-up approach.

Provision of adequate information to communities and their formal commitment to implementation in thedesign phase helps successful implementation.



Addressing the actual problems in the field orients preliminary analyses on strategic options; in general
blueprint solutions have limited value due to diversity of local conditions.



Establishing economic feasibility of the planned approaches from the perspective of community
members based on a cost-benefit analysis is useful for identification of successful project strategy.



Early consideration of benefit distribution, gender and socio-cultural aspects helps avoid confusion andconflicts during implementation.

Adequate baseline information on the resources and socio-economic conditions is necessary forplanning and to allow assessment of impacts.

In countries with no or limited practical experience in community forest management, a national strategy
would be useful.

Formal commitment to the project implementation by partners and relevant stakeholders during thedesign stage can ensure effective implementation.

Clarification of the tenure and legal access by communities to the forest resource and their right to use
the resource avoids designing unfeasible projects.

Confirmation of the government capacity to effectively apply the forest legislation and to process
authorizations of forest use is also a good practice.

Technical aspectsAll forest goods and services including non-timber forest products, fauna and environmental services
merit consideration at the planning stage.



In restoration projects of secondary and degraded forests, appropriate use of low-cost naturalregeneration can be feasible.

ITTC-JC(XLV)/2 Annex II
Page 32
In plantation projects, critical elements have been species selection to local conditions, seed availability
to meet demand, quality of planting material, as well as phasing of targets to ensure continuous flow of
benefits in the long run and to learn from experience.

Economic aspects


Incentives can be effective if they provide tangible benefits for the community during the whole cycle ofthe operation and beyond.

Community forest enterprises need to be oriented for profit generation.

Engaging those community members who are committed to work for community forest enterprises canensure efficient operations and targeted results.

Engagement of the private sector as commercial partners is often highly desirable to have access tomarket, technology and finance.



Cooperation between communities can ensure sufficiently large supply capacity to customer demand for
products.

Wages paid in community forest management and enterprises need to be considered costs, not benefits.

Mitigation of economic risks of the community forest enterprise requires specific measures.

Social aspects


Consistent effective participation of communities can be ensured by adequate prior consultations,continuous information flow, as well as transparency on project implementation arrangements andfinancial flows.

Appropriate sharing of benefits, including to the poor members of the community, helps broad support toeconomic activities based on forests.

Continuous monitoring of the gender aspects helps ensuring participation of and benefits for women.

Capacity building

In addition to technical skills, business management and organizational capacities need to be built up.



The approach of lead/promotion producers can be useful for effective grassroots level dissemination of
results.

Training needs to be demand driven and practical but carefully planned. Target groups of the training
strategy need to cover all the actors, not only technical staff or community leaders.



Production of adequate tools for implementation (guidelines, manuals and technical packages forcommunity forest management and enterprise) in local language(s).contributes to the project’s broader
impacts.



In natural forest management projects, relevant training covers planning (inventory work, environmental
impact assessment, other studies, identification and assessment of strategic options, elaboration ofmanagement plans), production (particularly reduced impact logging), commercialization of products,
and organizational aspects.

Dissemination and mainstreaming of experienceBroader application of key success factors, lessons learned and constraints requires their properinterpretation in the local context to allow general conclusions.



Various dissemination mechanisms (e.g. community visits, community business forums) can ensure
effective sharing of experience.

Community networks are highly useful for dissemination.

ITTC-JC(XLV)/2 Annex II
Page 33
To remove the constraints encountered in community forest management the project’s policy
recommendations need dissemination to decision-makers and follow-up.

In order to gain broad acceptance for CFM/CFE as a development strategy, effective communication canensure awareness on the credibility of communities as responsible stewards in the sustainable
management of their forests

Implementation arrangementsTo ensure accountability and capability of non-governmental intermediaries need careful assessment(including, among others, technical knowledge, social organization, associated transaction costs,
sustainability of commitment, capacity to continue support after project termination).



Adequate field presence of project staff is necessary in CFM/CFE projects.



Ownership and management of project assets after termination (e.g. nurseries, vehicles, laboratories,etc.) need to be clarified early in the project planning.

Community engagement in monitoring and evaluation during and after the project is useful and costefficient.

SustainabilityLinking with national forest programmes and similar initiatives can help ensure post-project government
support.

Engagement of commercial partners can ensure post-project revenue generation.

Linking the project with micro-credit, seed financing and credit schemes can help ensure post-project
financing.

Phasing of project interventions is often advisable to keep specific project objectives attainable.

Specific exit strategies need consideration already during the planning stages and their finalization isnecessary well before the project completion.

ITTC-JC(XLV)/2 Annex II
Page 34
SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD044/99 Rev.2 (F)PD021/97 Rev.2 (F)PD 15/96 Rev.2 (M,I)
PD 24/00 Rev.1 (I)PD014/92 Rev.2 (F) I

PD026/92 Rev.2 (F,I)
PD033/93 Rev.1 (F) I

PD018/94 Rev.1 (F) II
PD037/95 Rev.2 (F)PD013/96 Rev.1 (F)PD010/97 Rev.1 (F)PD014/98 Rev.1 (F)PD038/99 Rev.1 (F,I)
PD049/99 Rev.2 (F)PD289/04 Rev.1 (F)PD 58/99 Rev.1 (I)

IMPLEMENTATION OF A MANAGEMENT PLAN BY THE CHIQUIACA ANDOROZAS COMMUNITIES IN TARIJA, BOLIVIADEVELOPING TROPICAL FOREST RESOURCES THROUGH COMMUNITYBASED FOREST MANAGEMENT, NUEVA VIZCAYA, PHILIPPINESUTILIZATION, COLLECTION AND TRADE OF TROPICAL NON-WOOD FORESTPRODUCTS IN THE PHILIPPINESPROMOTION OF SUSTAINABLE UTILIZATION OF RATTAN FROM
PLANTATION IN THAILAND
A DEMONSTRATION PROGRAM OF SUSTAINABLE UTILIZATION OF
TROPICAL FORESTS BY MEANS OF DIFFERENTIATED MANAGEMENT IN
HAINAN ISLAND, CHINA - PHASE I
DEVELOPMENT OF METHODS AND STRATEGIES FOR SUSTAINEDMANAGEMENT OF MOIST TROPICAL FORESTS IN CAMEROONCONSERVATION, MANAGEMENT, HARVESTING, AND INTEGRATEDSUSTAINED USE OF FORESTS IN THE CHIMANES REGION, BENI, BOLIVIA PHASE I
PARTICIPATORY FOREST DEVELOPMENT IN THE ALTO MAYO REGION FOR
THE SUSTAINABLE MANAGEMENT OF MOIST TROPICAL FORESTSMANAGEMENT OF CATIVO FORESTS AND NON-TIMBER PRODUCTS WITH
THE PARTICIPATION OF RURAL AND INDIGENOUS COMMUNITIES, DARIEN,PANAMA
MULTIPLE-USE MANAGEMENT IN THE MACAUA NATIONAL FOREST BASEDON RUBBER ESTATES - PHASE I: DEVELOPMENT OF MASTER PLAN TOSUPPORT COMMUNITY ORGANIZATIONA SUSTAINABLE MANAGEMENT MODEL IN THE IWOKRAMA RAIN FORESTSUSTAINABLE USE AND REFORESTATION OF AMAZON FORESTS BY
INDIGENOUS COMMUNITIESDEMONSTRATION COMMUNITY FOREST MANAGEMENT IN THE NATURAL
CLOUD FORESTS OF THE URUMBA BASIN, SAN IGNACIOPILOT PLAN FOR THE SUSTAINABLE MANAGEMENT OF 10,000 HECTARESOF SECONDARY FOREST IN SAN LORENZO, ESMERALDASMANAGEMENT OF THE EMERALD TRIANGLE PROTECTED FORESTSCOMPLEX TO PROMOTE COOPERATION FOR TRANSBOUNDARYBIODIVERSITY CONSERVATION BETWEEN THAILAND, CAMBODIA AND
LAOS (PHASE II)INTRODUCTION OF A VILLAGE INDUSTRY IN THE COMMUNITY AROUND AN
INDUSTRIAL FOREST PLANTATION IN INDONESIAITTC-JC(XLV)/2 Annex II
Page 35
THEMATIC SUMMARY REPORT No. 6
Illegal Logging and Forest Certification

1.

INTRODUCTION

Combating illegal logging and development of forest certification are common issues in the tropical timber
producing countries and to the international trade. ITTO has a strong commitment with sustainable forest
management (SFM) and was one of the first international organizations to develop and promote Criteria andIndicators (C&I) to facilitate the sustainable management of tropical forests. This and other initiatives havecontributed to reduce illegal logging and helped the development of certification schemes.
Assisting members with their efforts in this area is part of the Objectives of the International Tropical Timber
Agreement (2006) which call for promotion of the expansion and diversification of international trade intropical timber from sustainably managed and legally harvested forests.
ITTO has supported its member producing countries to improve forest legislation, governance and law
enforcement to establish enabling conditions for sustainable forest management. Strengthening of national
capacities in enhancing law compliance and developing forest certification has been a key issue in this field,
together with information sharing on various voluntary mechanisms and timber tracking technologies,
including their adoption at the national level.
ITTO’s Thematic Programme Tropical Forest Law Enforcement, Governance and Trade (TFLET) and the
ITTO/CITES Programme have been instrumental in supporting member countries in this field.

2.

KEY ISSUESIllegal logging is driven, inter alia, by weak governance, ready access to market of illegally harvested
timber, high short-term profits for illegal operators, and lack of alternative economic activities for forest
dependent people. In many countries there is no level playing field for forest management units (FMUs)
which comply with legal requirements and strive for SFM.



Weak governance is typically associated with limited or no transparency on financial transactions in theforest sector, lack of enforcement and insufficient field control of harvesting operations in forest areas,
corruption, lengthy and over-regulated bureaucratic procedures for legal timber production and trade intropical timber, lack of prosecution of culprits, and inadequate low-paid staff. These constraints are often
associated with the reluctance to required institutional reforms in the forest administration.



The failure to ensure land rights for indigenous peoples, forest-dependent people and other traditional
rural populations has led to illegal logging and limited progress in forest certification in many tropicaltimber producing countries. In addition, indigenous populations and other forest communities are weakly
organized and equipped to safeguard their own forest resources against external violators of their rights.

Projects in addressing illegal logging and weak governance are often complex and sensitive to changes
in political priorities and economic conditions.

Strengthening of governance is often hampered by the lack of reliable information on legal and illegal
production and trade of forest products.

Many current government-operated control systems for the supply chain contain several loopholes andshortcomings thereby reducing their credibility for verification of legality of tropical timber and timber
products.

Progress in certification has been constrained by: (i) inadequate capacities to develop and implement
national certification standards at the FMU level; (ii) uncertainty about market benefits which could haveencouraged producers to take early action; (iii) increased costs to be borne by FMUs; and, (iv) constantly
changing market requirements both in public and private procurement policies related to legality andsustainability of timber products.

ITTC-JC(XLV)/2 Annex II
Page 36Credibility and market acceptability of different forest certification systems have been questioned
sometimes based on legitimate concerns, sometimes due to stakeholder or competitive interests, orsometimes because of speculative information. The choice of forest certification system to be applied
remains therefore a sensitive question for tropical timber producers.

Occasionally progress in forest certification has been constrained due to inconsistencies between
government regulations and certification standards.

3.

LESSONS LEARNEDIllegal logging
Identification of the main drivers of illegal logging and associated trade is necessary for designingmeasures to curb it.

Providing clarity on land tenure issues is necessary for establishing the legal origin of timber and legal
compliance in an FMU.

The formal recognition of the land rights of indigenous peoples and community customary land rights
should be a priority but tends to be beyond the scope of forest projects.



Mechanisms should be put in place to bring indigenous peoples´ organizations and national NGOs, theprivate sector and the government together for meaningful dialogue on forest governance andcertification.

Conflict resolution techniques have proved useful in stakeholder consultations but the capacity to apply
them is sometimes weak.



Downsizing the industrial overcapacity and make it compatible with sustainable forest production levels,
as expressed as the Average Annual Cut, may be necessary to reduce the pressure for illegal logging.
Regulatory measures on downsizing may be necessary but are politically and economically difficult toimplement. In addition, it may be even counterproductive in case of weak governance. Regulation of new
investments in expanding harvesting and processing capacity is commonly the first step. Other
approaches such as voluntary measures should also be explored in cooperation with the private sector.



The reduced supply of large diameter logs to processing industries has also stimulated positive changes
in business strategies in the utilization of forest resources. Several companies have invested in new
equipment to improve the utilization of raw material through processing of small-sized logs and lesserused species (LUS).



Addressing the needs of small-scale enterprises and the informal sector in strengthening governanceand implementing timber tracking usually requires specific support.



Improved governance requires increased transparency and accountability of forest authorities andprivate sector operators. This should be duly considered in the design of forest information systems.

Paper trail-based timber tracking systems have inherent weaknesses reducing their credibility. Thesesystems are likely to remain an intermediary solution.



The development of the local capacity is vital to ensure the sustainability of the project. It also facilitates
the funding of new future activities. Excessive reliance on use of external consultants has hampered theuptake of their recommendations, which may affect the project's sustainability.



Governance strengthening projects often produce valuable technical studies and other reports. Project
impacts can be enhanced by effectively disseminating information to relevant government agencies,
universities, the private sector, NGOs, and other stakeholders. In addition, press releases and policy
briefs have been useful for dissemination of key information to the general public through newspapers
and other media.

ITTC-JC(XLV)/2 Annex II
Page 37
Forest certification
Certification processes at local and national levels have brought the private sector, government andNGOs together contributing to improved understanding of difficulties in implementing SFM and its
certification, and thereby to a constructive dialogue among stakeholders.



Fundamental elements in all forest certification systems are legal compliance and good quality
management plans and their effective implementation. Forest certification is therefore a useful tool for
improving governance.



There may be a need to harmonize national regulations and certification standards to enhancecertification’s role in promoting legal compliance. Projects need to examine this issue.



For FMUs achieving certification means entering an on-going process with enterprise commitment tocontinual improvement. FMUs are under risk of losing their certificates unless such improvements are
made.



Although the actual certification process at the FMU level may require only one year to be completed,the preceding preparatory process can be arduous and time consuming. It may take several years for a
FMU to be ready for certification.

Phased-approach could be suitable in achieving full certification of an FMU. The first step would usually
be verification of legal compliance. However, even the phased-approach is also demanding, e.g. interms of the strict documentation required, and it can also be time consuming. As the phased-approachshould aim at full certification, the FMUs that enter this procedure are expected to be fully committed tothe process, granting them enough time to make necessary adjustments. FMUs should be aware thatmarket benefits may be rather limited until full certification has been achieved.

Government involvement in promoting certification is crucial through improved regulations andprocedures, incentives for certified FMUs, as well as direct training support.

Enterprise level capacity building for certification usually covers improvement of the forest management
system, changes in operational practices (e.g. RIL, occupational safety and health), training of staff andsub-contractors, and strengthening of the company-community relationships.

4.

GOOD PRACTICES

Illegal logging and governance strengthening

A detailed study on the current situation and on the future needs, demands and expectations ofstakeholders helps planning of the project strategy.



Effective involvement of key stakeholders is important in projects on governance and certification. It
helps mitigate negative impacts related to eventual institutional and other changes during the project
implementation;Improving governance is often complex and the project design need adequate consideration ofnecessary measures for institutional strengthening and policy reform.

Good project design allows for flexibility to ensure effective implementation in changing political andeconomic conditions. This would also contribute to the sustainability of the project.

Governance projects often need to address access to statistical and other information at the national andregional levels throughout the different phases of the forest production chain, within appropriate
standards of quality and timeliness of information.

Institutionalization of governance strengthening projects can ensure future continuity and sustainability.

ITTC-JC(XLV)/2 Annex II
Page 38Projects designed to improve legislation and policy produce specific recommendations for the requiredchanges with adequate indicators to measure progress. Pursuing these recommendations is critical forthe sustainability of governance projects.



In regulations and procedures of tracking of timber and timber products, development of systems basedon digitized data capture, storing and analysis to minimize errors and malpractices is usually preferable
compared to paper-trail based approaches.

In governance projects involving improved information systems, technical training needs to coverdatabase managers, enforcement staff, and various users of the improved information.

Effective dissemination on project plans, activities and results is critical for the project impacts andsustainability. Effective dissemination of lessons learned is necessary for mainstreaming to the policy
decision-making level.

Forest certification


The consistency between mandatory legal requirements and certification standards need to be clarified.



Development of national forest certification standards helps ensure their consistent application in thespecific country context.

Pilot enterprise approach to build up FMU level capacity for certification needs to include adequate
provisions for validation of experience and dissemination of results. Firm commitments are needed fromparticipating enterprises to sharing of the knowledge generated.



Pilot enterprise approach is also applicable to certification of community forest enterprises but clarity isneeded about the cost-benefit ratio and sustained financing of auditing, if community enterprises cannot
pay for these services themselves.



Assessment of the basic level of management systems of community forest enterprise is necessary as
their strengthening may be needed before introducing new instruments like timber tracking system orforest certification.

In the development phase forest communities need support from and close contact with local authorities
and other relevant bodies operating in the region as well industrial companies using timber from theforest area. Good project design includes measures to facilitate these linkages.



Relevant target groups of training on certification include, among others, FMU managers, technical staff,
sub-contractors and auditors on technical aspects, and key stakeholder groups on general aspects.

Technical assistance is effective when it (i) is carefully timed within the project work schedule; (ii)focuses on aspects that cannot be tackled by national expertise; and (iii) includes sufficient training toensure knowledge transfer.

There is a risk of conflict of interest if technical assistance and certification audits are carried out by thesame organization which should be avoided.

ITTC-JC(XLV)/2 Annex II
Page 39
SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD 85/01 Rev.2 (I)PD 35/94 Rev.4 (M,I)
PD 25/96 Rev.2 (M)PD 27/95 Rev.3 (M) II
1
PD 56/00 Rev.3 (M)PD 27/95 Rev.3 (M) II
2
PD 80/01 Rev.6 (M)PD128/91 Rev.2 (F)PD017/00 Rev.3 (F)STRATEGIES FOR THE DEVELOPMENT OF SUSTAINABLE WOOD-BASEDINDUSTRIES IN INDONESIA
FOREST PRODUCTS MARKETING ORGANIZATION FEASIBILITY STUDYCHINA'S CONSUMPTION OF FOREST PRODUCTS AND ITS DEMAND FOR
THEM IN THE INTERNATIONAL MARKET BY THE YEAR 2010ESTABLISHMENT AND OPERATION OF A FOREST STRATEGICINFORMATION CENTER (CIEF) PHASE II STAGE 1
ENHANCEMENT OF THE FOREST STATISTICS INFORMATION AND
MANAGEMENT SYSTEM (STATFOR) THROUGH THE INTEGRATION OF TWOCOMPUTER MODULES: COMPILATION OF MANAGEMENT INVENTORY DATA
AND MANAGEMENT OF EXPORT LOG LUMBERYARD (GABON)ESTABLISHMENT AND OPERATION OF A FOREST STRATEGICINFORMATION CENTER (CIEF) PHASE II STAGE 2CONSOLIDATING SUSTAINABLE FOREST MANAGEMENT CERTIFICATIONSYSTEMS IN INDONESIA
MANAGEMENT, CONSERVATION, AND DEVELOPMENT OF MANGROVEFORESTS IN PANAMACONSERVATION AND DEVELOPMENT IN THE NATURAL PROTECTEDAREAS SYSTEM OF TAMBOPATA (PERU) - MADIDI (BOLIVIA)ITTC-JC(XLV)/2 Annex II
Page 40
THEMATIC SUMMARY REPORT No 7
Criteria and Indicators for Sustainable Management of Tropical Forests

1.

INTRODUCTION

The ITTO Criteria & Indicators for Sustainable Management of Tropical Forests (C&I) were originallypublished in 1992 and since then they have been revised; training and other support have been provided tocountries to facilitate C&I implementation. The purpose of a common set of C&I has been to facilitate
governments, forest managers, communities, smallholders and other stakeholders in monitoring, assessing
and reporting on the status of forest management and progress made towards sustainable forest
management (SFM) at the national and forest management unit (FMU) levels. The ITTA includes several
Objectives that are related to the implementation of the C&I to promote sustainable management of tropicalforests, including objective (m) Encouraging members to develop national policies aimed at sustainableutilization and conservation of timber producing forests, and maintaining ecological balance, in the context ofthe tropical timber trade and objective (o) Encouraging information sharing for a better understanding ofvoluntary mechanisms such as, inter alia, certification, to promote sustainable management of tropicalforests, and assisting members with their efforts in this area.
The ITTO C&I are aimed at serving as a framework for member countries to develop their own system forassessing and monitoring progress towards sustainability at the national and FMU levels. It is expected thatwhen the indicators are made operational in specific country and local contexts, the information generated
can facilitate policy design and ground-level implementation of SFM.
The C&I is therefore a useful instrument which enables countries and FMUs to report on the progress madewhile revealing areas which need additional efforts to achieve SFM.

2.

KEY ISSUESThere is still a lot of misunderstanding on the purpose and value-added of C&I as a tool for implementing
SFM at national and FMU levels. Clarity is also lacking on what are the necessary enabling conditionsfor SFM in national and local contexts.



National C&I have often been developed through a process which identifies in detail what areappropriate indicators in local contexts. Participation of the development process has sometimes been
limited to the government agencies rather than including other relevant stakeholders like the private
sector, community forest organizations and NGOs.



The governments of tropical timber producing countries have programmes to promote and enforce SFM
policies and practices by the private sector but there is often no comprehensive data on their impacts;



The most critical level for implementing SFM is the forest management unit level. The private sector andforest communities being responsible for a large proportion of tropical timber production are therefore thekey target groups of C&I implementation. However, their participation has been limited in many
producing countries where the focus has been in the government-managed forests.



There is a strong and growing demand among importers and buyers for information on SFM practices ofcompanies producing tropical timber. The C&I is a potentially useful tool for communication but it is still
underutilized and not well understood by target groups in the export markets.

It is the responsibility of the government to ensure a legally defined Permanent Forest Estate, which is afundamental element of C&I and necessary for FMUs to achieve SFM.



The complementary roles of C&I implementation and forest certification processes at local level are notwell understood. However, the C&I can provide a useful framework for national certification standards.

ITTC-JC(XLV)/2 Annex II
Page 41
3.

LESSONS LEARNED

Project design

C&I implementation in ITTO member countries has proved to provide valuable contributions to thecurrent knowledge on SFM at the ground level and major inputs to national policy development. In forest
enterprises implementing C&I, it has been demonstrated that managing forestry operations sustainably
is not only essential but also feasible.



Unless the enabling conditions in national forestry policy and company policies are in place as identified
in the C&I and various ITTO Guidelines, progress in SFM implementation will be slow.

Government commitment to SFM based on C&I can persuade the industry and forest communities toembark on systematic efforts to achieve SFM.

The adoption of C&I as a positive approach has had a powerful psychological and motivational effect on
promoting SFM in many countries. However, good communication is necessary over the entire process
involving testing, adjusting to local conditions and implementation.



During the implementation process it is useful to clarify the link between the government regulations on
the use of natural resources and the C&I. This can greatly assist forest managers to understand what
SFM means in practical forest management.



It is essential that, at the project planning stage, there is sufficient baseline information on the state of
the forest resource as otherwise testing and implementation of C&I may not be meaningful. This would
help stakeholders visualize the scale of the problems and the tasks at hand, to estimate the size andtime span of the project.

The absence of baseline data on the state of the forest, for example, also makes it difficult to measureand evaluate some of the C&I project’s physical outputs;

National level processes in developing and testing C&I can be useful in bringing together government
agencies, the private sector and NGOs and contributing to a fruitful dialogue on what SFM is and what
are the constraints in achieving it. Broad participation strengthens the legitimacy of C&I as a tool to makeprogress towards SFM.



Adopting national level C&I and their integration in the forest monitoring system is an important step in
the implementation process of SFM. A field manual on how to implement SFM in FMUs may be required
to facilitate the operational-level work carried out by forest managers.

The training strategy is critical for follow-up work to be done to integrate C&I into management andinformation systems at different levels. Trainees are expected to play two roles: (a) to serve as a pool of
trainers to train responsible staff of concession companies and work in educational institutions andtraining programmes on SFM, and (b) to work as internal assessors in forest organizations or external
auditors of independent certification and verification bodies. Trainees should also be able to advise
forest managers on corrective actions required to improve present practices.



Human resource development in SFM needs to be understood as a long-term continuous effort andperiodic assessments based on C&I can reveal gaps in the existing skills. In general, countries should
prepare comprehensive national programmes for training on the implementation of SFM targeted atforest managers and communities as well as other stakeholders.



Valuable lessons can be learned from companies and forest agencies in other tropical and non-tropicalcountries which are also engaged in applying SFM measures.

Project implementation


A major risk involved in the implementation of C&I projects has been reluctance of the private sector toparticipate and share their experiences with others. Industry motivation on the implementation of C&I islinked with government shifting from a purely regulatory approach to one that combines regulation with

ITTC-JC(XLV)/2 Annex II
Page 42
incentives and market orientation. There should be clear benefits for companies and communities, suchas e.g. reduced bureaucratic requirements to ensure their full participation.


One reason for reluctance has been the appropriateness of provision of confidential information to othercompanies and stakeholders. This issue needs careful consideration during C&I related project
implementation.



Lack of involvement of some stakeholders in the national C&I processes has been a critical limitation fordissemination and impacts of the project. The private sector, forest communities and NGOs should be
beneficiaries of the results and outputs, and their active participation should be ensured. This involves
ready access to information, regular meetings, effective dissemination and broad participation in training
events.

Community organizations are useful in ensuring peoples' broad participation reducing also project costs
during the C&I development phase. The absence of community groups in the process has limited project
impacts. Specific action is necessary to ensure effective community participation in implementation of
C&I projects

Partnerships have been valuable in C&I projects. Community and NGOs can play a useful role inpromoting SFM and assisting FMUs in their efforts to gain efficiency. Building up strong strategic
partnerships between the government, the civil society and the private sector is a long-term endeavor
which needs to be initiated at the national level during the project formulation stage in order to identify
common objectives and ensure transparency and accountability in the C&I implementation process.

Implications of institutional reforms such as on-going decentralization process, can lead to engaging new
stakeholders (local governments, enforcement and environmental authorities, etc.) in the C&I process.

Many C&I projects have revealed that there is an urgent need to develop better understanding andcoordination between the authorities of the central and local governments to avoid overlapping anduncoordinated interventions targeted at FMUs.



Projects implemented by the private sector often produce important results that would be valuable togovernment policy development. However, the feedback loop has been weak and there should be amechanism, identified at project formulation, for validating and bringing the lessons learned to theattention of government (e.g. national workshops, analytical studies).

Involving representatives from main importing countries in workshops and other phases of C&I projects
has proved to be useful for improving understanding on sustainable management of tropical forests inexporting countries.

4.

GOOD PRACTICES

Project designIn the participatory project planning process, it is important to explain the positive nature of the C&I andhow this tool can help stakeholders in their efforts towards SFM.



Learning from other countries´ experience is useful when the country has limited experience on C&I
implementation.

Project strategy may include development and implementation of national C&I based on ITTO C&I andtheir testing which can be on FMU, sub-national or national level, as appropriate.



The top management of companies participating as pilot FMUs need to be fully informed on theimplications concerning sharing of experience on C&I implementation.

National-level project can preferably be housed in the planning/information unit of the forest agency.

ITTC-JC(XLV)/2 Annex II
Page 43
Project implementation
Strong government commitment to use C&I as a policy tool is critical for achieving the targeted results.

Participation of all the relevant stakeholders is important in the development of national C&I.



Close coordination among involved government agencies is necessary.

Project steering group has a critical role to ensure effective implementation and may be assigned tasks
related to feedback of the results to policy decision-making level.

Multidisciplinary working groups and thematic sub-groups have been useful in elaborating national C&I.



Community forests may need special measures for their involvement in C&I implementation; pilot FMUs
could also include community forests.

Integration of statistical, economic and forest databases contributes to effective C&I implementation.

Statistical requirements of reporting to ITTO and other international bodies need to be considered.

Capacity building and disseminationEffective transfer of knowledge to local specialists avoids dependence on external technical assistance.

Training planning need to cover all the levels and target groups.



Dissemination of the C&I information produced can ensure sustained stakeholder support to periodic
monitoring and other follow-up activities.



Wide dissemination in different forms to all relevant stakeholders is desirable including yearbooks,
information bulletins, newsletters, CD-ROMs, web portals, and other interactive means.

Sustainability
Sustainability in the C&I implementation at national and local levels requires periodic review on the
progress made for identifying corrective action needs.



Pilot projects need to include validation of the results and their implications for policy adjustment should
be identified.

Establishment of a partnership engaging the private sector and other stakeholders can ensure theirsustained support to improved systems.

Regional-level sharing of experiences on C&I implementation through networking is helpful for further
development.

ITTC-JC(XLV)/2 Annex II
Page 44
SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD 48/99 Rev.1 (M,F)
PD 80/01 Rev.6 (M)PD042/00 Rev.1 (F)PD195/03 Rev.2 (F)PD021/97 Rev.2 (F)PD389/05 Rev.2 (F)PD 1/95 Rev.4 (M)

SHARING OF INFORMATION AND EXPERIENCES ON PRIVATE SECTOR
SUCCESS STORIES IN SUSTAINABLE FOREST MANAGEMENT (MALAYSIA)CONSOLIDATING SUSTAINABLE FOREST MANAGEMENT CERTIFICATIONSYSTEMS IN INDONESIATRAINING OF TRAINERS FOR THE APPLICATION OF THE ITTO, AND THE
NATIONAL CRITERIA AND INDICATORS OF SUSTAINABLE FOREST
MANAGEMENT AT FOREST MANAGEMENT UNIT LEVELTO ESTABLISH A NATIONAL MONITORING INFORMATION SYSTEM FOR THE
EFFECTIVE CONSERVATION AND SUSTAINABLE MANAGEMENT OF
THAILAND’S FOREST RESOURCESDEVELOPING TROPICAL FOREST RESOURCES THROUGH COMMUNITYBASED FOREST MANAGEMENT, NUEVA VIZCAYA, PHILIPPINESAPPLICATION OF THE INTERNAL MONITORING OF SFM PERFORMANCE AT
FOREST MANAGEMENT UNIT LEVELTRAINING DEVELOPMENT ON THE ASSESSMENT OF SUSTAINABLE
FOREST MANAGEMENT IN INDONESIAITTC-JC(XLV)/2 Annex II
Page 45
THEMATIC SUMMARY REPORT No. 8
Forest Information Systems

1.

INTRODUCTION

There is currently a lack of systematic and reliable information on forest resources and forest-basedindustries in many countries. There is also a need for further development of forest information systems
which can support policy and market development for sustainable forest management and associated further
processing of tropical timber and timber products. Improved transparency on forest sector would greatly
facilitate international efforts against illegal logging and illegal timber trade. Adequate information isnecessary for governments in assessing performance and revising forest policies and regulations. Both the
public and private sectors need sufficient information for decision making on investments.
ITTO has supported many countries to develop Forest Information Systems (FIS) together with various
activities in this area including training, collection, compilation and dissemination of information and otherrelated activities. The purpose has been to improve availability and quality of information on the forest sector.
ITTO coordinates with member countries and other international organizations the collection, compilationand dissemination of information on tropical forests, industrial production and trade of tropical timber
products.
These actions have been taken in view of achievement of the ITTA objective (i) Strengthening the capacity ofmembers for the collection, processing and dissemination of statistics on their trade in timber and informationon the sustainable forest management, and objective (h) Improving market intelligence and encouraging
information sharing on the international timber market with a view to ensuring greater transparency andbetter information on markets and market trends, including the gathering, compilation and dissemination of
trade related data, including data related to species being traded.

2.

KEY ISSUESThe quality of planning, supervision, monitoring and evaluation is often weak due to lack of sufficient
information on forest resources, production and markets, and environmental values and services offorests.



The quality of data is often weak, not least because of manual systems used in data collection andprocessing. The credibility of FIS relies on the accuracy and timeliness of the data processed and theinformation disseminated.



The value added of processed statistical data is still largely limited. Comprehensive data analysis has not
yet been given due attention. Therefore, FIS inputs to policy development and decisions have often
remained limited. In order to have a full impact on policy reform and management decisions, an effectiveplanning and control system is needed. FIS needs to go beyond mere data capture and correction oferrors to include analysis and effective dissemination mechanisms.

In many countries, the national FIS is understood as a tool for the government. However, forest andmarket information is needed by the private sector and other stakeholders but their needs are not always
recognized.

Inconsistencies of data produced by different government agencies create confusion among stakeholders
and can lead to unnecessary conflicts in pursuing policy objectives.



Lack of equipment and qualified personnel for the processing, analysis, validation and dissemination of
information is frequently observed; the status of information units can be low and its budgetary resources
limited. This is often due to the fact that the top management has not realized the value of information
systems as a management tool.

The scattered and dispersed nature of the forest information among the different institutions andgeographic levels of the country represents a particular challenge for FIS development.

ITTC-JC(XLV)/2 Annex II
Page 46Due to limited available resources, many national FIS have been developed through a piecemeal
approach focusing on certain elements (e.g. timber tracking, industrial wood consumption). Various FIS
components are not therefore integrated within the same modular framework and data inconsistencies
are common, reducing its value for supervision and monitoring.



Dissemination of statistical information suffers from delays and may not be directed to all the relevanttarget groups. This undermines the benefits from the investment in information systems. Data collectedfrom the field is not reported back to middle management that perceives itself as a simple provider of
information rather than as an effective user in day-to-day decision-making process.

3.

LESSONS LEARNED

Project designIn view of the dynamics and complexities of the forest sector, the design of national forest information
system projects, should allow sufficient flexibility to facilitate technical and administrative adjustment over
time.



The FIS design should be targeted at meeting information needs of different stakeholders.



To limit the scope of FIS projects, their strategy could initially be based on minimum requirements andthe entire systems can be built up by phases through a modular approach within a comprehensive FIS
framework.

The entire FIS scope can be extensive and may include such elements as forest inventory data on
different levels, concessions, community forests, reforestation activities, industries, non-timber forest
products, wildlife and hunting, prices, markets, etc.

Project implementation

Many projects targeted at improving data capture and processing have found that annually publishing
information on timber production and trade supplied by the concessionaires and the timber industry
companies is not sufficient for effective sectoral control and administration. It is necessary to have acloser and more frequent control of the source data supplied by the private sector and to establish field
check procedures.

The implementation of a FIS project requires the involvement of multidisciplinary and well trained
personnel, with a capacity to transfer their knowledge. An experienced team, good working conditions
and good personal links with the production sector has resulted in efficient project implementation. The
core project team can be relatively small but needs in-depth understanding on the sector combined withknowledge on information technology.

Compilation of statistical information into reports is the first phase which needs to be complemented byanalysis of data. Studies based on statistical analysis add value to the information generating insights forpolicy design, organizational development, and investment opportunities in the forest sector.



The transfer of a new technology that requires change in work procedures may initially cause fears andresistance to change. It is important to effectively communicate on the objectives and the expected
situation to maintain confidence and enhance cooperation among the involved parties.

In the specification of the equipment, growing demands due to improved awareness and skills of potential
users should be anticipated in order to accommodate increasing volumes of data to be handled in the
future.

Sufficient funds should be allocated for training, with emphasis on database managers, to ensure theefficiency of the system, to be more autonomous in solving day-to-day problems, and to have an
exposure to new developments. Training is also needed on the use of webpages.

To ensure effective management and project sustainability, a stable team of qualified personnel isrequired as frequent key staff rotation has disrupted many development efforts.

ITTC-JC(XLV)/2 Annex II
Page 47


A number of FIS projects have extensively relied on external expertise, creating a continued dependence
on their inputs. The same can happen if the project software is based on tailor-made applications rather
than relying on those which are broadly used in forest organizations for other purposes.



Use of hand computers for field-level data capture can reduce problems of data accuracy andconsistency in forest inventory and field control of timber harvest. Concessionaires should be encouraged
to adopt this kind of technology.



Security policies and procedures are needed for FIS control including automatic back-up copies of thesystem, which should be kept outside the facilities of the institution.



If the FIS is not properly institutionalized and the status of the information unit remains marginal, theproject’s sustainability is endangered.



The interaction of the forest authority with the industry staff can be developed to ensure timely supply ofdata to FIS.



A good forest information system can be adjusted to also cover the needs of other areas. The experience
gained and the lessons learned can help in the building up and operation of new systems of information(e.g. biodiversity or other environmental aspects) for the country.



The use of electronic means is important to improve the dissemination of the information, but printed
material is still often necessary for reporting on main indicators.



Implement dissemination and outreach procedures at all levels related to the information resources(database) and statistics available through the system, so that they can be used by different users andcan generate actions that will contribute to the consolidation of the system;

4.

GOOD PRACTICES

Project designFIS projects require detailed planning. They would benefit from being part of clear national/ organizational
strategies to improve 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 can be given a broader role than just datacollection.

Phasing of this kind of projects can be risky due to risks related to institutional or organizational changes.
Also overambitious scope and targets should be avoided.

Strong government commitment is necessary for achieving the targeted results and awareness need tobe created among top management on the strategic importance of reliable up-to-date information.

Technical aspects


Spatial information is a key aspect of any FIS which needs to be integrated with Geographic Information
Systems.

Land holding and tenure arrangements and regulatory requirements should be considered in the FIS
design.



Four basic sub-systems need to be covered: data collection, data processing and storage (data base),
data analysis, and dissemination and access to data.

Modular approach can be useful for individual sub-systems of information on specific topics, butinteraction, coordination and compatibility among various data bases need to be ensured. Also, theITTC-JC(XLV)/2 Annex II
Page 48integration of statistical, economic and forest data is necessary and provides effective management andcontrol tools.
Specific measures are often needed for acceptable quantification of illegal forestry operations and the
production and raw material use of the informal sector (e.g. periodic sample-based surveys).



Reconciling data on timber flows in different stages of the logistic chain is important for data consistency.

Consideration of statistical requirements of reporting to ITTO and other international bodies in the FIS
design will allow cost-efficient reporting in due course.



Clarity on conversion factors from log to sawnwood is needed from the beginning; particularly those
applied for import and export data.



Statistical theories and methods can improve and optimize data collection and analysis.



Building up consistent time-series on critical indicators adds value to the information produced.



In decentralized systems, appropriate communication technology can ensure better links among different
levels of organization.

Engaging the private sector and other stakeholders, and providing results to them contributes to theirsupport to improved systems.

Compatibility of the designed FIS with the budgetary framework is necessary.

Clarity of responsibilities among participating organizations and their different levels is critical for
economic efficiency.

Systems depending on external expertise and services tend to have low cost-efficiency and can sufferfrom unexpected risks.

Capacity building and dissemination

Building up statistical information capabilities of the participating organizations may require special
efforts.

Training should cover all the levels, including data collectors and users of data.

Training is also often needed for effective dissemination.

Wide dissemination in different forms to all relevant stakeholders is desirable including yearbooks,
information bulletins, newsletters, CD-ROMs, web portals, and other interactive means; these different
ways are complementary.

Implementation arrangements


Project steering group has a particularly critical role to ensure effective implementation of FIS projects
due to the need for inter-agency coordination and cooperation.

Multidisciplinary working groups and thematic sub-groups can be helpful in working out the detailed FIS
components.

Effective interrelationship among available skills (experienced, high-level personnel), the required
technological levels (specialized hardware and software) and efficient organization and management of
the project is a key factor of success.



Private sector can be effective in implementation if the government does not have sufficient staff andcapacity, and when flexibility is needed in implementation.

ITTC-JC(XLV)/2 Annex II
Page 49
Sustainability

FIS needs to be institutionalized and supported with adequate budgetary and staff resources. The
information unit in forest agencies needs a clear mandate and appropriate place in the organization toensure its continuous role.



Sustainability of FIS projects requires strengthening links with the involved parties, comprehensive
system manuals, reliability of information, effective dissemination, and established procedures ofstatistical analysis.

An agreed follow-up and monitoring arrangement can help ensure sustainability.



Effective dissemination of results showing the value of information produced contributes to sustained
stakeholder support to operation of the information systems.

Specific exit strategies in the project design and during implementation are often required for ensuring
sustained operation of the FIS.

Regional-level sharing of experiences through networking is helpful for further development of thenational FIS.

SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD 29/96 Rev.1 (M)PD 34/94 Rev.1 (M)PD 27/95 Rev.3 (M) II
1
PD 56/00 Rev.3 (M)PD 27/95 Rev.3 (M) II
2
PD 24/95 Rev.1 (I)PD 35/94 Rev.4 (M,I)
PD 167/91 Rev.1 (M)REINFORCEMENT OF THE NATIONAL SYSTEM FOR THE COLLECTION AND
PROCESSING OF FOREST STATISTICS AND SUPPORT FOR THE TRAINING
OF FIELD UNITSESTABLISHMENT AND IMPLEMENTATION OF A FOREST STATISTICALINFORMATION SYSTEMESTABLISHMENT AND OPERATION OF A FOREST STRATEGICINFORMATION CENTER (CIEF) PHASE II STAGE 1
ENHANCEMENT OF THE FOREST STATISTICS INFORMATION AND
MANAGEMENT SYSTEM (STATFOR) THROUGH THE INTEGRATION OF TWOCOMPUTER MODULES: COMPILATION OF MANAGEMENT INVENTORY DATA
AND MANAGEMENT OF EXPORT LOG LUMBERYARD (GABON)ESTABLISHMENT AND OPERATION OF A FOREST STRATEGICINFORMATION CENTER (CIEF) PHASE II STAGE 2
THE IDENTIFICATION, PROPERTIES AND USES OF THE TROPICAL TIMBERIMPORTED TO CHINA FROM LATIN AMERICAFOREST PRODUCTS MARKETING ORGANIZATION FEASIBILITY STUDYDIAGNOSIS AND EVALUATION OF THE BRAZILIAN FORESTRY SECTORITTC-JC(XLV)/2 Annex II
Page 50
THEMATIC SUMMARY REPORT No. 9
Reduced Impact Logging

1.

INTRODUCTION

Reduced impact logging (RIL) was developed to facilitate and improve the implementation of sustainable
forest management (SFM) of tropical forests. The original purpose was to reduce impacts of harvesting
operations, but RIL has become a new management approach for improving operational planning,
harvesting methods, and supervision and monitoring. RIL is part of the implementation of forest management
plans with which its planning is closely linked. RIL, therefore, is one element of the toolbox for SFM at theforest management unit (FMU) level. It is applicable both in large-scale concession operations, for which it
was originally developed, and small-scale community and privately managed forests.
In addition to reducing damage to the remaining vegetation, soil and water, RIL also contributes to improved
regeneration in harvested areas and future sustainable production of timber and non-timber forest products.
As the technology also aims at reducing costs, its application contributes to profitability. RIL also improves
working conditions and occupational safety and health of the workers. In addition, RIL-based operations
usually meet the forest certification standards related to harvesting.
The ITTA Objectives calls for the promotion of practices that contribute to improve sustainable managementof tropical forests, such as RIL. The development and promotion of RIL are related to several ITTA
Objectives including objective (f) Promoting and supporting research and development with a view toimproving forest management and efficiency of wood utilization and the competitiveness of wood products
relative to other materials, as well as increasing the capacity to conserve and enhance other forest values intimber producing tropical forests, objective (m) Encouraging members to develop national policies aimed atsustainable utilization and conservation of timber producing forests, and maintaining ecological balance, inthe context of the tropical timber trade, and objective (p) Promoting access to, and transfer of, technologies
and technical cooperation.
ITTO has been supporting the development of low-impact logging models, testing operational options in
specific forest conditions and training of planners, supervisors and workers in several countries. Some
projects have supported governmental and non-governmental organizations to establish training centers todevelop human resources for the timber industry and to facilitate the adoption of reduced impact logging
operations.

2.

KEY ISSUES

RIL is not yet adequately mainstreamed in the policy and regulatory requirements set for forest
operations.



The government policies and regulations are not always compatible with RIL and may need to be revised
to allow its adoption.

Implementation of RIL largely depends on the commitment of the timber industry management toimprove operational forestry practices. There is a perception among many companies that RIL leads toincreased costs even though the improved operations have been demonstrated to be cost-efficient.

Convincing company management of the benefits of RIL is not enough. Field managers should be
supportive to the necessary changes and adequately trained to implement RIL in their particular area of
responsibility.



Full implementation of the RIL approach requires effective supervision and communication within theorganization. This often means a fundamental change to a logging company’s organizational structure
and rules of procedure/operational standards.

In some cases companies are not interested in RIL because it disrupts the status quo of their
management systems and operational practices, and because many companies are mainly concerned

ITTC-JC(XLV)/2 Annex II
Page 51
about their immediate supply of raw material rather than optimizing their costs and minimizing theirenvironmental impacts.
Introduction of RIL has in many pilot projects involved the use of expensive equipment which has beennecessary for improved forestry practices. Mainstreaming of the technology has been constrained bylimited investment capacity of FMUs.



Adaptation of RIL to community forests and other small-scale FMUs is still at initial stages. This would
require specific concerted efforts.

Specialized RIL training centers have suffered problems of sustainability when external financial support
has finished. Adequate training fees from private companies sending their staff for training have not beenadequate to ensure financial sustainability.

3.

LESSONS LEARNED

Project design

RIL projects usually involve participation of pilot FMUs which can serve as training grounds andexperimental areas. This approach has proved to be useful for the introduction of RIL. However, this is
only the first step and mainstreaming RIL needs other efforts.

The pilot area selected for the implementation of RIL practices is often remote and located in steep
terrain which tends to slow down the pace of work and reduce the demonstration potential of the area.



The RIL model is currently mainly applicable to large logging enterprises that use heavy equipment.
Medium-sized and small-scale operations and community-based forest enterprises use simpler
technologies that also tend to result in adverse environmental impacts. As these smaller FMUs are
numerous in many countries, their particular conditions should be taken into consideration in project
design (choice of technology, FMU-level capacity building strategy, etc.).



For the successful application of RIL it is necessary to have technically competent planners, operators,
and supervisors. Well-trained operators need equally well-trained supervisors to ensure that work is
carried out properly and to provide feedback to improve practices continually.

The field-level operational staffs, the core target group of many RIL projects, needs to be fully consulted
in the determination of training requirements in the planning phase.

Participating companies should be prepared to meet the costs of training of their staff.

Collaborating agencies have not always actively participated in the project which calls for clear statementof intention from all the planned parties.



A feasibility study on a special RIL training center should be carried out before its financing can bejustified.

Implementation

It is important to identify environmental impacts associated with logging operations, particularly in steeply
sloping areas and highly erodible watersheds. Especially planning of forest roads and otherinfrastructure should be carefully done, and measures to minimize adverse impacts should be taken.



Alternatives to opening forest tracks and skidding can be analyzed for possible feasibility in specific local
conditions. Helicopter logging reduces the need for road building in steep terrain and eliminates impacts
on soil and water but it is costly and therefore applicable only in special cases. Cable logging systems
are usually applicable in steep terrain.

In many cases, the same road standards and road construction practices are used on steep slopes as inlowland forests. This can lead to significant stream sedimentation and loss of water quality, with serious

ITTC-JC(XLV)/2 Annex II
Page 52
downstream impacts on drinking water, river transportation, irrigation, hydroelectric projects, andactivities such as fish and shrimp farming.


Detailed operational planning of RIL harvesting needs to consider, inter alia, differences in the woodtechnological characteristics of the lesser known timber species, and needs for taxonomical identificationof additional species to ensure their due consideration in operations. Simple field guides for quick
species identification have proved to be useful for lesser-used species.

Machinery has been inappropriate in some local conditions and should therefore be specified, applicableto local conditions.



Import procedures of improved logging machinery for RIL should be clarified in advance before theirprocurement.

Overly optimistic scheduling of activities should be avoided. Collecting the necessary baseline data for
RIL planning has often taken longer than originally anticipated.



RIL projects are rarely successful for effective transfer of knowledge if the implementation is mainly
based on short-term visits by overseas consultants.

Training of trainers and pilot FMU staff has been useful in the initial stages of RIL introduction but itneeds to be complemented by broader awareness raising among industry management and thegovernment staff and expanding training activities to other target groups.



It is important to understand that the targeted benefits may require a longer period of implementation
than anticipated which can reduce the possibilities for convincing industry management on RIL’s ultimate
benefits.

For effective dissemination of RIL project outputs to the public and private sector stakeholders requires a
ready access to the results through short-term training courses, workshops, seminars, videos andposters in exhibitions, printed material, and a well-designed web-page.

Technical reports of RIL projects are crucial for informing management and professional staff in private
and public organizations. They should include comparative analyses on costs and productivity as well as
environmental impacts of the RIL and conventional logging approaches.

Reaching small-scale enterprises and community forests which are scattered in the country andexperience limitations in the access to information would need specifically tailored dissemination
activities.

SustainabilitySome RIL activities and their promotion have lost momentum after the project completion.



Monitoring of RIL’s success based on a set of relevant indicators can help in communicating on the longterm benefits obtained.

Comparative analyses between traditional logging and RIL have often been lacking in many projects
limiting the industry’s interest in improved practices.



Independent RIL training centers usually need continual external funding even if demand for training
services can be created through the project.
It is difficult to sustain RIL training operations and promotion based on training courses fees.



4.

GOOD PRACTICES

Project design and implementation


RIL project design needs to be realistic and overambitious goals should be avoided.

ITTC-JC(XLV)/2 Annex II
Page 53

Essential aspects of RIL projects include (i) establishment of baseline information, (ii) identification of
specific causes of accelerated soil erosion, (iii) development of guidelines for road construction and otherpractices that would significantly reduce the erosion rates, and (iv) training.



Careful selection of sites for pilot areas at the very beginning can ensure that the areas meet criteria
related to access and representativeness.

Comparative cost and benefit analysis of RIL is an efficient tool to promote awareness raising on
benefits among stakeholders.



External experts are often required but resident staff or experts working continuously over long periodwith local counterparts would be preferable.

Sustainability
Measures for systematic follow-up training and harnessing of knowledge and applicability to local
conditions of the RIL technology, including among medium and small-sized operators and community
forests, can ensure sustainability.



Carefully planned exit strategies have proved to be critical for the continuous adoption of the RIL
technology. They can include among othersoFull involvement of national specialistso

A follow-up mechanism for tracking cost-benefit ratios and other impactsoAssessment of the post-training performance of field operativesoWidespread awareness raising among forest industry managementoTargeted dissemination on the benefits and costs, practical demonstration and technicaldocumentation.

oPartnerships with educational forestry institutions to ensure RIL to be included in their curriculumThe government should consider establishing policies that encourage forest industry and communities tomake available their workers for training on a regular basis.

In order to address future sustainability when establishing training facilities, the project could makefunding conditional for incorporating RIL in training.



RIL training centers could eventually acquire a corporate status before the external funding is exhausted
to enable self-financing from beneficiary organizations. However, as training fees charged to participants
have not generally been sufficient for ensuring sustainability.

SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD 47/94 Rev.3 (I)PD 3/96 Rev.2 (I)PD026/96 Rev.4 (F)PD39/06 REV.2 (F).

INDUSTRIAL UTILIZATION OF LESSER-KNOWN FOREST SPECIES INSUSTAINABLY MANAGED FORESTSDEVELOPMENT AND EXTENSION OF RUBBERWOOD PROCESSING AND
UTILIZATION TECHNOLOGYSTUDIES ON THE MANAGEMENT STANDARDS OF HILL DIPTEROCARPFORESTS IN SARAWAK FROM A WATERSHED MANAGEMENT POINT OF VIEW
- PHASE IIREGIONAL PROJECT TO PROMOTE REDUCED IMPACT LOGGING IN THE
CONGO BASIN. PHASE 1.

ITTC-JC(XLV)/2 Annex II
Page 54
THEMATIC SUMMARY REPORT No. 10
Further Processing, Industry Development and Efficiency

1.

INTRODUCTION

Further processing of tropical timber and timber products creates value to the forest resource and thereby
contributes to sustainable forest management (SFM). It creates income and employment, promotes
investment, increase foreign exchange earnings and substitute imports in producing countries. Developmentof further processing of tropical timber is therefore part of national sustainable development strategies. To
make this happen the industrial operations need to be able to meet customer demands and be efficient inorder to compete in the local, national and global markets.
Due to obsolete machinery and lack of vertical and horizontal integration in many tropical countries, theindustry suffers from low recovery rates and high levels of residues both in harvesting and processing
operations. There is a considerable potential to improve efficiency in wood raw material utilization which
would improve the profitability of the industry and reduce environmental impacts. However, innovations areoften needed to tap this potential.
The tropical timber industry development promotion is part of the ITTA, particularly its objectives (i)Promoting increased and further processing of tropical timber from sustainable sources in producer member
countries, with a view to promoting their industrialization and thereby increasing their employment
opportunities and export earnings; and (f) Promoting and supporting research and development with a view
to improving forest management and efficiency of wood utilization and the competitiveness of wood products
relative to other materials, as well as increasing the capacity to conserve and enhance other forest values intimber producing tropical forests.
ITTO has financed a large number of projects to facilitate the sustainable development of the tropical timberindustry, and the impacts have largely been positive. However, there is significant scope to improve
effectiveness, impacts and sustainability of projects.
The recently approved Thematic Programme of Industry Development and Efficiency is expected to give aboost to ITTO’s support in this field.

2.

KEY ISSUESLack of knowledge on the status of the forest resource and potential availability of raw material is often acritical constraint for industrial investment and policy design.



Excessive local capacity in relation to the potential wood supply creates market imbalances and canencourage illegal logging.



Wasteful logging practices and low recovery rates in industrial processing are the main reasons for
inefficiency, which is often coupled with lack of utilization and commercialization of industrial by-products
and residues.

Only relatively few potentially valuable timber species are being utilized in many countries andopportunities offered by lesser-used species (LUS) are not tapped. High logging waste is often coupledwith lack of markets for all species and wood dimensions that could be harvested.

The value added of tropical timber industries in many producing countries is low, representing lost
opportunities for sustainable development. Lack of downstream further processing is constrained bylimited knowledge on market prospects, and weak financial situation of mills not being able to invest in
new product lines. Low levels of productivity are an additional general constraint for the competitivenessof tropical timber industries.



Skills and capacity at all levels of the organization tend to be inadequate in most producing countries.
Even weaknesses in basic technical skills are a widespread problem throughout the tropical timber

ITTC-JC(XLV)/2 Annex II
Page 55
industry. Only few countries have been able to provide regular opportunities for training in the woodbased industries.



To ensure continuous industrial development, employers and employees need to be able to continuallyrefresh and enhance their skills and also need to be interested in sharing experiences with others. The
tropical timber industry has not been particularly open for external training of their staff primarily relying
on in-house training, the impact of which by definition is somewhat limited.

Industry management does not always understand the value of investment in human resource
development and is often unaware of technical improvement opportunities and market prospects. The
technical and market requirements of further processed products are often poorly understood, limiting
the interest in entering value-added operations which need different business models and managerial
skills from primary processing of sawnwood, veneer and plywood.



R&D is still typically weak in tropical timber industries. Technology transfer takes place primarily throughsuppliers of machinery. The industry’s capacity to innovate is generally weak and new productdevelopment is constrained by limited understanding of market requirements and capacity to market
entirely new products in the domestic and regional markets.



Due to internal focus in industrial operations, there is often lack of interest and commitment among top
management to participate in development projects limiting the entry of technical and managerial
improvements.

Industry associations are often too weak to act as effective intermediaries for sharing of new knowledge
and promoting the industry’s interests in policy development.

3.

LESSONS LEARNED

Enabling conditions

Consistent strong political leadership in the promotion of industrial development is necessary and it
would reduce conflicts among stakeholders on the development and conservation objectives related tothe utilization of tropical forest resources.



Elaboration and implementation of national strategies for the development of the forest industry basedon sustainably managed forests and legal compliance can provide a useful framework for public sector
support and industrial investment.



Establishment of enabling conditions for investment in SFM, forest plantations and further timber
processing through an appropriate policy and an adequate legal and institutional framework isnecessary. Specific financing mechanisms for timber industries are often needed.

Barriers to industrial and trade development need to be reduced or removed in many countries, including
high transaction costs due to bureaucratic procedures, frequent delays in obtaining necessary
government permits, customs codes, representing irrelevant and unnecessary trade restrictions, etc.

Project designA collaborative approach to project implementation involving a wide variety of stakeholders in the design
and implementation can result in significant positive impacts, but it can lead to unnecessary
complexities, representing a risk for lack of commitment of some partners.



There is a need to consider other related ITTO-funded projects and other initiatives in the country during
the project design and implementation to learn from lessons, enhance synergies and avoid overlaps.

ITTC-JC(XLV)/2 Annex II
Page 56

In a private sector targeted project it is difficult to combine several broad objectives at the same time,e.g. improvement in forest management, industry efficiency and value added timber processing,marketing and capacity building in certification.



If the project is implemented by a private sector organization (e.g. an industry or trade association), its
capacity to implement the planned tasks needs careful assessment.



Due to lack of sharing of new knowledge and skills among the industry at large, project impacts often
remain limited.



Pilot projects can be very useful but assessment of their outcomes and dissemination of the results areneeded as part of the project to ensure mainstreaming of feasible improvements in further processing
and efficiency improvement.



Active participation of primary beneficiaries and other main stakeholders is necessary to ensure project
relevance, technical feasibility, and realism in setting objectives.



A good risk assessment in forest industry projects can minimize external effects on project
implementation and enhance the sustainability of results.

Technical assistance and trainingProjects targeted at supporting forest industry development should be demand driven. If the main driveris expanded supply of technical assistance, there is a risk for failure or ineffectiveness. Awarenessraising on the need for improvements and development opportunities among industry management may
therefore be necessary starting from the project’s inception.



If industrial companies only participate as recipients of technical assistance, the results may not be
adopted by them. Firm company commitment to participate in development projects is therefore
necessary.

Technical studies and assistance can create significant improvements in company operations if preparedby qualified specialists. On the other hand, sustained reliance on external support should be avoided
through transfer of knowledge and skills.



It is important to manage beneficiary expectations from the outset. For instance, there should be clarity
about how long technical assistance to companies will be available and what exactly it should deliver.

In case there are only few pilot companies as beneficiaries of a technical assistance/ training project,
there should be a clear strategy for how to disseminate the results to other companies.

In-house training on new technologies and skills is pragmatic and effective as it can be tailored to solve
the specific problems of individual mills. In-house training can also accommodate a large number ofparticipants at minimum cost. It allows direct participation of trainees in problem identification anddiscussion, as well as practical demonstration of technical improvements.

Baseline information on performance of individual mills and procedures for monitoring of progress would
be needed prior to commencing the in-house training. This would allow proper project design andquantitative assessment of impacts of the training provided.

In-house training sessions should also be attended by host company top management to gain in-depth
understanding on the role of processing efficiency, product quality, and skills which together largely
determine company competitiveness and business survival. This understanding can also ensuresustainability of the project impacts.

External training is appropriate for specialized skills and it is also valuable for cross-breeding oftechnology improvement among participants.

Workshops, seminars and dissemination of technical documents to relevant stakeholders are primary
vehicles for sharing of information and training results.

ITTC-JC(XLV)/2 Annex II
Page 57
R&D and market developmentSupport to R&D aimed at improving forest management and harvesting operations, industrial efficiencyof wood utilization, as well as innovation and new investment can yield significant positive results. R&D
should also consider how to enhance forest values through waste reduction and optimum utilization of
the timber production potential.



Development of lesser used species utilization would require knowledge on their technicalcharacteristics, potential wood supply based on forest inventories, testing of processing methods,
definition of product characteristics, and market acceptability, before marketing can be started.

Market studies for timber products are valuable for industry if they include product/species specificinformation on domestic and export market potential and distribution channels, competitiveness, andidentification of practical sales opportunities. Studies should focus on tropical timber and timber products
from sustainably managed forests.

Market studies are also necessary for development of fuelwood, charcoal and other forms of bioenergy
as business areas for timber industries.

Project implementation



The private sector needs to be fully involved in the implementation of industrial development projects.

Adaptive learning approach, based on regularly collected feedback during project implementation, canresult in practical improvements which ensure that project activities are targeted at beneficiary needs
recognizing that these tend to change over time.



Private sector organizations like industry associations can provide a useful dissemination channel ofproject results to individual enterprises.

Industry cooperation is critical to the success of all training courses, with participating companies
providing premises, materials, and equipment. Industrial companies should also make available trainers
and participate in the preparation of training materials to ensure that they are applicable in practice. Thisis necessary as educational institutes do not have the adequate capacity for specialized technicaltraining which involves practical demonstration.

Sensitivities related to commercial interests can limit participation of companies in development projects.
Such sensitivities should be identified early in the project cycle together with options to mitigate thisproblem, with the purpose of respecting confidentiality of company information and promoting effective
cooperation within the industry.

Continuous dissemination of information and results that could be replicated contributes to project
impacts and sustainability. Dissemination needs to be tailored to target audience needs to facilitate
adopting operational improvements.

Project staff turnover is a significant risk and needs to be minimized. To mitigate this risk, the knowledge
generated should be properly documented, key documents filed and secured, and other information on
project implementation safely transferred in case there is a change in responsible personnel of the
project.

Communities and other stakeholders in forest industry projects

In industry related projects, consultations with, and involvement of, relevant stakeholders are necessary
right from the beginning of project formulation up to the implementation and completion of the project.
Active involvement of stakeholders is a key to success of industrial development projects.

For projects that consider the involvement of local communities in forest management, it is important toclarify the relevant legal aspects in particular to ensure the communities’ future access to the resources
and their use rights.

ITTC-JC(XLV)/2 Annex II
Page 58



People living around wood-processing factories cannot simply be converted from primary producers or
subsistence farmers into industrial operators. Such a change is a sensitive time-consuming process
which needs to be coupled with socio-economic development of surrounding communities. Executing
agencies which are specialized in technological development are usually ill-equipped for such tasks andtherefore partnerships with organizations with experience on social development may be necessary indevelopment projects involving new industrial sites in rural areas.

In projects with the involvement of local communities, a pre-project or initial assessment of the economic
conditions is often needed as it helps in improving the realism of the project design, assessment of
impacts, dissemination of results, and mitigation of possible implementation risks. It is especially
important to produce information on the costs and benefits of industry development for the affected
communities.



It is not always possible to involve all the community members in forest activities related to a project. A
special unit or organization facilitating the participation of community members has often proved to be
useful to enhance social impacts of industry development.

The main public and private sector stakeholders involved in a project have, in general, access to theproject results through short courses, printed material, technical assistant visits, consultations,workshops, exhibitions and seminars. However, in general, small-scale enterprises and individual
producers scattered in the region may have limitations in this respect and often need specific targeted
actions to have access to the project results.

Sustainability

The positive impacts of the training courses will only be sustainable if the courses are continued on aregular basis and training materials are widely disseminated, including through relevant training andvocational institutions.



There is often a risk of relying too heavily on industry in-kind contributions because such cooperation
cannot be assured into the future; therefore, engagement of training institutes and other partners is also
important.

Sustainability of project impacts can be ensured through awareness raising among company owners andexecutives so that they no longer act solely for short-term profit, but as investors striving for long-termsustainable business development.

4.

GOOD PRACTICES

Project designProject strategy can cover timber and timber products, non-timber forest products, bio-energy andpayment of environmental services to increase social, economic and environmental benefits of industrial
operations.

Good forest industry projects are focused, relatively short term and have realistic targets. Long-term
projects with a large number of objectives and activities, as well as several actors, should be avoided.



Cooperation, coordination and partnerships with other related projects and initiatives are necessary.
Duplication should be avoided and the project proposals should give necessary information on this
aspect.



Successful industry projects strive for direct financial benefits to participating companies contributing totheir commitment to implementation, project impacts and sustainability.



In R&D projects close relationship between the productive sector and research institutes ensures thatthe actual development needs are addressed.

ITTC-JC(XLV)/2 Annex II
Page 59
Projects involving the private sector

Criteria of selecting companies participating in an enterprise-targeted project can include the following
elements depending on local conditions: (i) potential for efficiency improvement in forest and industrial
operations; (ii) development strategy of value added wood products; (iii) market potential of less-used
species in the international and domestic market; (iv) commitment to capacity building and technicalassistance for the industrial development; (v) capacity in marketing and market promotion, (vi)development of partnerships and networks with other exporting companies and international buyers; and(vii) improvement potential of the planning and control system.

Company requests for project participation require clear indications on what are their needs for external
support. Commitment to implementation can be demonstrated by providing in-kind and othercontributions. Participating companies should not be only recipients of technical assistance or training.

Co-financing in projects involving the private sector can be a decisive element to achieve the necessarycommitment but clear agreements should be established with participating companies to define their
obligations and expected benefits.

Elements for measurable target indicators for industry development can include logging efficiency,
recovery rates of processing, waste utilization, labor productivity, product quality, added value, domestic
and export sales volume, and cost and price levels.



Projects involving several companies can be successful if there are no conflicts of commercial interest.



Private sector executing agencies such as industry associations need to have an adequate
management capacity to implement projects and this should be demonstrated in advance.

Training and technical assistanceEffective technical assistance and capacity building are demand driven rather than pushed by theservice supply. Due to lack of awareness among industry management, specific efforts may be needed
to create the demand.

An appropriate balance between technical assistance and training is important in the project strategy.
Too much emphasis on training will not give desired results on the ground without accompanying
technical assistance.



Prior to training courses, target participants should be interviewed to ascertain their skill levels andtraining needs for course design to meet those needs.



Effective dissemination of technical manuals and other materials produced to non-participatingcompanies and other relevant stakeholders is necessary for broad project impacts.

Sustainability

Effective communication on positive results and experiences gained raise awareness and interest
among non-participating companies. In particular, the results of forest resource surveys, market studies
and technical studies require effective dissemination in appropriate forms to potential beneficiaries andto share knowledge broadly.



There is often a need to engage other partners (e.g. training institutes, research bodies, extension
services, NGOs, consulting companies, etc.) to contribute to the project sustainability (e.g. futureavailability of training programs, technical assistance).

Industry associations can have an important role to secure future availability of technical assistance andother consulting services for members after the termination of the project.

ITTC-JC(XLV)/2 Annex II
Page 60



Relevant government agencies and educational and research institutes can be encouraged/tasked toprovide follow-up necessary technological and financial support. Their engagement in industry projects istherefore often necessary.

Continuous updating of relevant information to facilitate industrial development, especially on forest
resources, potential wood supply, and markets would contribute to the sustainability of forest industry
projects.

SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD 7/94 Rev.3 (M,I)
PD 109/90 Rev.4 (I)PD 10/00 Rev. 2 (I, F)
PD 51/00 Rev.2 (I,M)
PD 286/04 Rev.1 (I)PD038/99 Rev.1 (F,I)
PD 47/94 Rev.3 (I)PD 3/96 Rev.2 (I)PD 34/99 Rev.2 (I)PD 58/99 Rev.1 (I)PD 24/00 Rev.1 (I)PD 69/01 Rev.2 (I)PD 146/02 Rev.1 (I)PD026/92 Rev.2 (F,I)
PD026/96 Rev.4 (F)PD 35/99 Rev.4 (I)PD 167/91 Rev.1 (M)PD 17/92 Rev.4 (I)PD089/90 (F) III
PD089/90 (F) III
PD 3/96 Rev.2 (I)PD008/95 Rev.1 (F)INFORMATION AND TECHNICAL ASSISTANCE FOR PRODUCTION AND
TRADE ON TROPICAL TIMBERASSISTANCE TO MODERNIZATION, RESTRUCTURING AND DEVELOPMENTOF WOOD-BASED INDUSTRIES IN COTE D'IVOIRESUSTAINABLE MANAGEMENT AND UTILIZATION OF SYMPODIAL BAMBOOS
IN SOUTH-CHINA
IMPROVEMENT OF RUBBERWOOD UTILIZATION AND MARKETING IN
THAILANDSTRENGTHENING THE CAPACITY TO PROMOTE EFFICIENT WOOD
PROCESSING TECHNOLOGIES IN INDONESIA
DEMONSTRATION COMMUNITY FOREST MANAGEMENT IN THE NATURAL
CLOUD FORESTS OF THE URUMBA BASIN, SAN IGNACIO
INDUSTRIAL UTILIZATION OF LESSER-KNOWN FOREST SPECIES INSUSTAINABLY MANAGED FORESTSDEVELOPMENT AND EXTENSION OF RUBBERWOOD PROCESSING AND
UTILIZATION TECHNOLOGYDEVELOPMENT AND IMPLEMENTATION OF STRESS GRADING RULES FOR
TROPICAL TIMBER IN THE PHILIPPINESINTRODUCTION OF A VILLAGE INDUSTRY IN THE COMMUNITY AROUND AN
INDUSTRIAL FOREST PLANTATION IN INDONESIAPROMOTION OF SUSTAINABLE UTILIZATION OF RATTAN FROM
PLANTATION IN THAILAND
IMPROVED AND DIVERSIFIED USE OF TROPICAL PLANTATION TIMBER IN
CHINA TO SUPPLEMENT DIMINISHING SUPPLIES FROM NATURALFORESTSPROMOTING SUSTAINABLE UTILIZATION OF BAMBOO THROUGH
COMMUNITY PARTICIPATION IN SUSTAINABLE FOREST MANAGEMENTDEVELOPMENT OF METHODS AND STRATEGIES FOR SUSTAINEDMANAGEMENT OF MOIST TROPICAL FORESTS IN CAMEROONSTUDIES ON THE MANAGEMENT STANDARDS OF HILL DIPTEROCARPFORESTS IN SARAWAK FROM A WATERSHED MANAGEMENT POINT OF
VIEW - PHASE IIPERFORMANCE EVALUATION OF EXPORT WOOD FURNITURE IN RELATIONTO STRENGTH AND END-USE APPLICATIONS USING ESTABLISHED TESTSTANDARDDIAGNOSIS AND EVALUATION OF THE BRAZILIAN FORESTRY SECTORTECHNOLOGY TRANSFER/COMMERCIALIZATION OF SELECTEDCOCOWOOD UTILIZATION TECHNOLOGIESSUSTAINABLE FOREST MANAGEMENT AND HUMAN RESOURCESDEVELOPMENT IN INDONESIA - PHASE III
SUSTAINABLE FOREST MANAGEMENT AND HUMAN RESOURCESDEVELOPMENT IN INDONESIA - PHASE III
DEVELOPMENT AND EXTENSION OF RUBBERWOOD PROCESSING AND
UTILIZATION TECHNOLOGYMULTIPLE RESOURCES STRATIFICATION, MAPPING AND INVENTORY FOR
THE FIRST FOREST ZONE IN GABON - PHASE I

ITTC-JC(XLV)/2 Annex II
Page 61
THEMATIC SUMMARY REPORT No. 11
Non-Timber Forest Products

1.

INTRODUCTION

Non-timber forest products (NTFPs) are, for several countries, important products to generate social andeconomic benefits and thereby help the implementation of sustainable management of tropical forests.
NTFPs play an important role to improve livelihoods of local communities which are involved in theirharvesting, processing and trade. Some NTFPs (bamboo, rattan, medicinal plants, and others.) have large
formal markets and are traded internationally thereby generating income and employment in forest areas.
The ITTA objective (q) makes a specific reference to importance of NTFPs: “Promoting better understandingof the contribution of non-timber forest products and environmental services to the sustainable managementof tropical forests with the aim of enhancing the capacity of members to develop strategies to strengthensuch contributions in the context of sustainable forest management, and cooperating with relevant
institutions and processes to this end”.
Consequently, ITTO has financed a large number of projects to promote the production and trade of NTFPs
with significant positive impacts. For ITTO’s projects, it is important to demonstrate the linkage between
NTFPs and sustainable forest management (SFM). NTFPs can be the principal source of forest-based
revenue for local people but their harvesting, processing and trade is often inefficient and weakly organized
and therefore the potential to contribute to SFM is far from being tapped.

2.

KEY ISSUESInformation on collection/gathering, utilization and trade of NTFPs is important to develop sustainable
income and improve livelihoods of forest communities. However,available data is often deficient or may
be lacking to design programmes and projects.

Government policy and regulation may occasionally be in conflict with NTFP development.

The relationship between conservation and community forest enterprises (CFE) is not positive if overharvesting occurs in the forest. Projects involving NTFP production and utilization should take into
consideration biodiversity, and seek to balance environmental conservation aspects and socio-economic
benefits.



Limited basic skills of local communities in business development and their members are a key
constraint to sustainable NTFP use and its successful commercialization.

Promotion of sustainable use and management of NTFPs has to generally focus on the development ofsmall-scale production and marketing systems involving local stakeholders. However, reaching them canbe a major challenge to effectively share knowledge and experience.

Stakeholder participation, particularly in the case of forest communities, is vital for NTFP projects but
local people are not always effective participants.

Transfer of improved processing technologies for value added products can take place through SouthSouth cooperation but necessary commitments and incentives by both parties are not always easy toestablish.

3.

LESSONS LEARNED

Project designLand and forest use rights of local communities and indigenous peoples need to be compatible with thedevelopment of NTFP-based activities to avoid or reduce conflicts, and to ensure permanent access toland.

ITTC-JC(XLV)/2 Annex II
Page 62
NTFP project strategies can target at increasing socio-economic benefits and revenue of local
government through improved methods of harvesting, reproducing, processing and marketing for which
many opportunities exist in tropical forest areas. NTFP development could reduce the pressure on
forests once the forest communities’ income levels are improved.



Forest communities tend to have a perception that NTFP project operations are against government
rules. A detailed review of policies is therefore important, followed by effective communication to
stakeholders.



Many project designs have targeted at improving data and technical information but fail to makenecessary provisions for dissemination of results and support to their adoption.



Pilot projects including both harvesting and processing can be successful in demonstrating benefits fromNTFP development but their site selection should consider access to facilitate demonstration on the
ground.



NTFP development often needs targeted projects rather than support being part of other government
programmes.

Communities and other stakeholder participation
Implementation and sustainability of NTFP projects need active participation of local stakeholders.
Farmers and other beneficiaries of the communities need to be fully involved throughout the project
cycle.

The collaborative approach with active involvement of communities, the private sector and otherstakeholders has proved to be effective and facilitates the implementation of NTFP project activities.



Economic feasibility of the promoted improvements in harvesting and processing is critical to get farmers
and other community members interested in NTFP development. If long payback periods are expected,
the communities’ interest is easily lost.

Technically oriented NTFP projects (especially food projects) need to fully recognize socio-economic
conditions to ensure the acceptability of new technologies and facilitate their adoption by communities.

Conducting successive short training courses targeted at government extension staff, communities, andthe private sector to cover all the necessary aspects of the NTFP development can be a feasible
capacity building strategy if supported by adequate technical assistance.

NTFP production and tradeRaw material surveys and improved forest management are often required to justify major investment ordevelopment programmes NTFP production.

Traditional NTFP collection/gathering practices can be either sustainable or unsustainable depending on
factors such as harvest methods, intensity and frequency. Thorough assessment of traditional methods
is necessary before starting to develop new technologies. Gradual improvements in the existing
practices may often be the best approach for ensuring adoption by producers.



Waste reduction in the harvesting, processing and distribution process should be promoted as the waste
rates are often high.

Market studies need to be carried out in the beginning of the project to serve as a basis for technicalwork and marketing efforts.

Technical and market knowledge is necessary but not a sufficient condition for success. Other criticalelements include entrepreneurship development, micro-credit, and market linkages. These elements
have sometimes proved to be difficult to integrate into a single project.

ITTC-JC(XLV)/2 Annex II
Page 63Introducing new NTFP in the traditional domestic diets can be a difficult task, and therefore alternative
markets in urban areas should be sought. Even if local market may not exist for fresh NTFPs, processed
products may be destined for export markets, which are not limited by traditional use.

Quality control and complete product information are necessary for entering the formal markets,
especially in the case of preserved food products. For natural products there are fewer problems.



In export development, market studies are necessary in establishing potential sales volumes, quality
requirements, packaging and other safety standards, and specific marketing strategies. The entire
supply chain should be considered in developing export markets.



Access to financing is important to promote as projects tend to get bogged down with initial difficulties inbusiness development. The investment built up in social capital may therefore be lost.

Study tours to other countries in the region are extremely useful for community members to understandpractical aspects of NTFP development.



R&D activities have been successful when they have been clearly targeted at practical application inresource management, harvesting, processing and end-use utilization.

Sustainability
Economically feasible improvements which are broadly disseminated and can be demonstrated on the
ground can ensure the sustainability of NTFP projects.

Establishing commercial partnerships between producers and the private sector contributes to project
impacts and sustainability. Subsequent policy interventions may be necessary to ensure sustainable
impacts of NTFP projects. Governments should continue data collection to monitor changes in the forest,
to validate and fine tune management planning and sustainable harvesting levels for NTFPs after the
project completion.

Continuing financial and other support from local government has been critical to sustained success as
NTFP development is often focused on some regions in the country only.

Successful local initiatives are not always replicated, limiting community forest enterprise (CFE)development based on NTFPs as a strategy for sustainable livelihoods even though the project may
have demonstrated their viability. Effective dissemination is therefore necessary for ensuring replication
but further promotional efforts may be needed after the project’s completion.



Adoption of the project training products by relevant educational institutes contributes to projectsustainability. Also, networking between communities and the private sector within the country andregionally can improve sustainability.



Local beneficiaries may be unsatisfied for the lack of sustainabilitity of project support if the development
process is not sufficiently advanced. A successive stage of support programme may prove necessary toensure sustainability.

4

GOOD PRACTICES

Project designExisting policies and regulations should be reviewed to identify potential barriers for NTFP development.

The project strategy needs to provide for an active involvement of rural communities in SFM andutilization of NTFPs to enhance their socio-economic benefits and alleviate poverty.

Consultation processes and other participative arrangements should be put in place to ensurecommitment to project objectives and the communities and their members´ acceptance of the proposed
technologies.

ITTC-JC(XLV)/2 Annex II
Page 64
The pilot community approach is often feasible in introducing and testing improved technologies forcollection, processing and storage of NTFPs. Provisions in the project design should be made forvalidation and dissemination of the experience.

Training and extension strategies can be phased to ensure that beneficiaries are gradually exposed to
new information corresponding to their absorption capacity and development needs.

The duration of project interventions should be long enough to have an impact, but the strategy can also
be phased starting with technical and socio-economic studies.

ImplementationResource surveys, analyses of the existing harvesting and processing practices, market studies, andsocio-economic surveys should be carried out for detailed planning of the project implementation.



New technologies should result in livelihood and income improvements and they should be acceptableby communities.

Establishment of permanent sample plots for monitoring of plant occurrence and behaviour after
harvesting and management interventions is deemed necessary.

An appropriate balance between technical assistance and training to community members is needed.

Integration and transparency of supply chains of NTFPs contributes to generation of value added inforest areas and appropriate benefit sharing between actors.

Market strategies should consider the potential of local, formal national and international markets, andtheir product quality and other commercial requirements. In marketing, communities need to wisely
identify their target customers, how to reach them, how buyers make decisions, and what price can beobtained.

The project office should be located near the pilot project sites and other focal areas to facilitate the workand to enable ease supervision.

Sustainability


Risk factors associated to NTFP development can be mitigated by action to encourage the government
to provide enabling environment and support (finance, extension, legal access to the resource base,incentives for sound harvesting practices).

Appropriate information on techniques and technologies on NTFP product development and utilization
efficiency should be published and effectively disseminated.

Engagement of industry associations in dissemination and extension activities should be attempted
when they have adequate promotional capacity.

Establishment of partnerships between communities and the private sector should be promoted forsustainability of project impacts.

Regional thematic networks should be supported to promote utilization of individual NTFPs.

ITTC-JC(XLV)/2 Annex II
Page 65
SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD 15/96 Rev.2 (M,I)
PD 56/99 Rev.1 (I)PD 24/00 Rev.1 (I)PD 108/01 Rev.3 (I)PD 146/02 Rev.1 (I)PD 277/04 Rev.3 (I)PD026/92 Rev.2 (F,I)
PD037/95 Rev.2 (F)PD 3/96 Rev.2 (I)UTILIZATION, COLLECTION AND TRADE OF TROPICAL NON-WOOD FORESTPRODUCTS IN THE PHILIPPINESPROMOTION OF THE UTILIZATION OF BAMBOO FROM SUSTAINABLE
SOURCES IN THAILANDPROMOTION OF SUSTAINABLE UTILIZATION OF RATTAN FROM
PLANTATION IN THAILAND
DEVELOPMENT OF SUSTAINABLE RATTAN PRODUCTION AND UTILIZATION
THROUGH PARTICIPATION OF RATTAN SMALL HOLDERS AND INDUSTRYIN INDONESIAPROMOTING SUSTAINABLE UTILIZATION OF BAMBOO THROUGH
COMMUNITY PARTICIPATION IN SUSTAINABLE FOREST MANAGEMENTPROMOTING SELECTED NON-TIMBER FOREST PRODUCTS BASED ON
COMMUNITY PARTICIPATION APPROACH TO SUPPORT SUSTAINABLE
FOREST MANAGEMENT IN EAST KALIMANTANDEVELOPMENT OF METHODS AND STRATEGIES FOR SUSTAINEDMANAGEMENT OF MOIST TROPICAL FORESTS IN CAMEROONMANAGEMENT OF CATIVO FORESTS AND NON-TIMBER PRODUCTS WITH
THE PARTICIPATION OF RURAL AND INDIGENOUS COMMUNITIES, DARIEN,PANAMADEVELOPMENT AND EXTENSION OF RUBBERWOOD PROCESSING AND
UTILIZATION TECHNOLOGYITTC-JC(XLV)/2 Annex II
Page 66
THEMATIC SUMMARY REPORT No. 12
Markets¸ Marketing and Trade1.

INTRODUCTION

Markets, marketing and trade are important areas to develop and sustain a healthy timber economy. Markets
ultimately create the value for tropical timber and timber products and thereby establish preconditions forsustainable forest management (SFM). Trade contributes to generations of income and employment andsupports investments for competitive operations, which can ensure sustainability of the economic benefits
derived from timber and non-timber forest products and services.
Several ITTA Objectives reflect the importance of actions that are necessary to improve markets, marketingand trade of tropical timber and timber products. Among the ITTA Objectives relevant to this thematic area
are objective (b) Providing a forum for consultation to promote non-discriminatory timber trade practices;
objective (d) Enhancing the capacity of members to implement strategies for achieving exports of tropicaltimber and timber products from sustainably managed sources; objective (e) Promoting improved
understanding of the structural conditions in international markets, including long-term trends in consumption
and production, factors affecting market access, consumer preferences and prices, and conditions leading toprices which reflect the costs of sustainable forest management; objective (h) Improving market intelligenceand encouraging information sharing on the international timber market with a view to ensuring greatertransparency and better information on markets and market trends, including the gathering, compilation anddissemination of trade related data, including data related to species being traded; and objective (k)Improving marketing and distribution of tropical timber and timber product exports from sustainably managed
and legally harvested sources and which are legally traded, including promoting consumer awareness.
The International Tropical Timber Organization (ITTO) has financed several projects and activities related tothe development of markets, marketing and trade of tropical timber and timber products. These projects havemainly been aimed at improving market transparency and build up capacity in market information systems,
marketing and trade development.
The recently launched ITTO Thematic Programme on Trade and Market Transparency is expected toprovide increased support to this critical area in the work of the Organization.

2.

KEY ISSUESThe market requirements for timber and timber products are constantly changing due to economic
conditions, regulatory changes related to trade and increasing attention given to environmental aspectsof tropical timber products. This calls for intensive monitoring of new developments and identification of
implications for tropical timber producers. Without assistance, tropical timber producing countries willcontinue to face difficulties in having facilitated access to import markets.

Complex export and import procedures in both developed and developing countries, lack of clarity ofsanitary/phytosanitary and other regulations, and high transaction costs paid to trade intermediaries areother barriers for trade development.



Adequate knowledge on the market prospects is critical for investment decisions and policy design but it
is frequently insufficient. High risks need to be taken due to lack of detailed market information.



Information on the structure of the value chain of tropical timber and timber products is inadequate,
limiting strategic planning for vertical integration at enterprise level and policy design at national level.

Many market studies carried out are too generic to be useful for marketing development at enterpriselevel.



Small and medium-scale enterprises have limited access to available market information limiting their
possibilities for entering new business areas.

Few companies in the timber industry have adequate market information systems. In general, thecapacity to analyze available market information is also limited.

ITTC-JC(XLV)/2 Annex II
Page 67Knowledge on domestic and regional markets is often limited in the timber sector which has traditionallyfocused on main import markets. This has resulted in loss of significant economic opportunities.



Trade of tropical timber is heavily concentrated on a relatively few number of main commercial species.
Diversification would contribute to economic efficiency of forest management and utilization, but it has
been hampered by lack of information on markets and weak marketing capacities to bring new products
to the market. In particular, end uses and market characteristics of individual species, including lesserused species (LUS) and plantation species, are poorly known.

Trade development efforts have often been valuable but need active follow-up work by participatingcompanies, which has often been lacking.

In producing countries, the legal and policy frameworks are often inappropriate with bureaucratic
customs and inspection procedures and associated high transaction costs, corruption, as well as
inappropriate taxation and inadequate incentive mechanisms. There is a need for trade facilitation
measures to address these problems.

Interest and commitment of companies to participate in projects to strengthen marketing capacity hasoften been limited due to lack of understanding of potential benefits. Pilot companies have not been
eager to share new knowledge on markets that has been generated.



Private sector bodies such as industry and trade associations are too weak in most tropical timber
producing countries to play an active role in trade development.

3.

LESSONS LEARNED

Incentives to promote foreign trade have been a decisive factor in the expansion of the wood industry inseveral countries.



Regulatory measures to limit exports of logs and primary processed products tend to distort local
markets but can be a transitional measure to develop trade in further processed products.



Any market information improvement should be based on systematization of information rather than ad
hoc studies. Continuous monitoring of market developments is necessary. On the other hand, ad hoc
studies are often needed for kick-starting marketing in new products or markets.

Unreliable projections of demand and supply make planning at enterprise and national levels difficult,leading to taking unnecessary risks which can be significant both for the government and individual
enterprises.



Depending on the situation, market studies are needed to cover a broad scope for policy design andevaluation and be specific to serve for information needs of individual companies.

Market studies are also needed for bioenergy such as fuelwood and charcoal when markets aredeveloped for these products

Information on market potential on LUS needs to be complemented by inventories establishing potential
supply and by technical studies on processing aspects. Market promotion of LUS is only possible
afterwards.



Developing standards for timber and timber products and associated quality control can help improve
competitiveness.

Support to development of marketing strategies and strengthening of marketing skills can be piloted withfew companies but mechanisms are needed to share knowledge and experience broadly.

Support to improving market information and marketing can often be usefully provided through industry
and trade associations.

ITTC-JC(XLV)/2 Annex II
Page 68
4.

GOOD PRACTICES

Identification and proper assessment of optional measures of export trade regulation (export bans forlogs, export taxes and quotas, etc.) is necessary for designing policy measures for the development ofexports in further processed products.

Special studies can identify barriers to trade both in exporting and importing countries and propose
measures to eliminate or reduce trade barriers.



Clarification of the needs for information is important for a proper design of market studies and market
information systems.

Continuous updating of market and resource information is necessary due to changing demand andsupply conditions.



Development of market information systems and marketing capability needs specific targeted efforts,
including training.



Pilot enterprise approach in improving market information and marketing capability can be useful but
possible conflicts of interest among competing enterprises need to be addressed.

Trade development projects need to include provisions for follow-up activities by participating enterprises
to ensure their impacts.



Private sector executing agencies need to have an adequate management capacity for project
implementation.

Effective marketing promotion can be undertaken through well-organized roundtables between buyers
and suppliers in the country of origin with sufficient participation on both sides.



Effectively dissemination among potential beneficiaries is critical for investments in improving market
information. Special measures may be needed to convert the data into information which is useful forsmall and medium-sized enterprises.

Development of trade and market networks is helpful for ensuring sustainability of market promotion
projects.

ITTC-JC(XLV)/2 Annex II
Page 69
SOURCESThis thematic summary is based on the ex-post evaluation reports of the following projects:
PD 109/90 Rev.4 (I)PD 24/95 Rev.1 (I)PD 7/94 Rev.3 (M,I)
PD 15/96 Rev.2 (M,I)
PD 51/00 Rev.2 (I,M)
PD 146/02 Rev.1 (I)PD 167/91 Rev.1 (M)PD 35/94 Rev.4 (M,I)
PD 25/96 Rev.2 (M)PD013/96 Rev.1 (F)PD 17/92 Rev.4 (I)

ASSISTANCE TO MODERNIZATION, RESTRUCTURING AND DEVELOPMENTOF WOOD-BASED INDUSTRIES IN COTE D'IVOIRE
THE IDENTIFICATION, PROPERTIES AND USES OF THE TROPICAL TIMBERIMPORTED TO CHINA FROM LATIN AMERICA
INFORMATION AND TECHNICAL ASSISTANCE FOR PRODUCTION AND
TRADE ON TROPICAL TIMBERUTILIZATION, COLLECTION AND TRADE OF TROPICAL NON-WOOD FORESTPRODUCTS IN THE PHILIPPINESIMPROVEMENT OF RUBBERWOOD UTILIZATION AND MARKETING IN
THAILANDPROMOTING SUSTAINABLE UTILIZATION OF BAMBOO THROUGH
COMMUNITY PARTICIPATION IN SUSTAINABLE FOREST MANAGEMENTDIAGNOSIS AND EVALUATION OF THE BRAZILIAN FORESTRY SECTOR
FOREST PRODUCTS MARKETING ORGANIZATION FEASIBILITY STUDYCHINA'S CONSUMPTION OF FOREST PRODUCTS AND ITS DEMAND FOR
THEM IN THE INTERNATIONAL MARKET BY THE YEAR 2010
MULTIPLE-USE MANAGEMENT IN THE MACAUA NATIONAL FOREST BASEDON RUBBER ESTATES - PHASE I: DEVELOPMENT OF MASTER PLAN TOSUPPORT COMMUNITY ORGANIZATIONTECHNOLOGY TRANSFER/COMMERCIALIZATION OF SELECTEDCOCOWOOD UTILIZATION TECHNOLOGIESITTC-JC(XLV)/2 Annex II
Page 70
THEMATIC SUMMARY REPORT No. 13
PROJECT DESIGN AND IMPLEMENTATION1.

INTRODUCTION

Good project design is a critical factor for achieving objectives, achieving desired impacts which aresustainable over time, with lowest possible cost. Efficient implementation involving partners and relevant
stakeholders is the other critical element of good projects. Executing agencies are on different levels withregard to their capacity to design and implement projects; some are relatively experienced with wellestablished management systems, others are weaker still in the early phases of their learning curve. The expost evaluations of ITTO projects have shown that both have scope for improvement independently fromwhich particular problem needs to be solved through a project intervention.
This document summarizes the key issues, lessons learned and some good practices which tend to becommon to projects on reforestation and forest management, forest industry and economic information andmarket intelligence. Some of the comments, observations and conclusions may seem very specific because
they were drawn from a variety of projects. They are included however, because of their potential value forprojects under preparation or being executed.
The ultimate objective of this summary is to help project formulators and implementers in designing andexecuting future ITTO projects. The summary is based on the review of 92 ex-post evaluation reports on
projects implemented in Africa, Asia and Latin America. The reports of the Expert Panel on Project Appraisal
have been also drawn on.
ITTO’s Manual for project formulation (2007) remains the main guidance for how projects should bedesigned and proposals should be presented. This document provides valuable information which can beused for additional reference, as appropriate.

2.

ISSUES

Project designIn spite of improvements over time, the quality of project proposals remains a key issue. Weak proposals
have long approval process with several revisions. They also tend to lead to problems in implementation
due to inadequate planning.



While ITTO projects are usually satisfactory with regard to their relevance and their implementation has
been fairly effective, areas which especially need improvements include enhancing project impacts andsustainability. In particular, attention is needed to improve economic impacts, to address gender issues,
to enhance social capital, and to empower forest communities.



The contents of project proposals may meet the formal ITTO requirements but they often lack clarity on
the problems to be solved, how objectives are related to them, and the project strategy for feasible
solutions. This is particularly typical in field-level projects on community forestry and enterprises,
restoration, plantations, and projects which involve several stakeholders.



Project beneficiaries are not always clearly identified. Due consideration has not sometimes been given
to the needs of ultimate beneficiaries while executing agencies have been presented as the primary
beneficiaries of projects.



Stakeholder involvement is often inadequate which results in weaknesses in project design, limited or noownership of project activities and results, and limitations in project impacts and sustainability.



In some areas related to field implementation, institutional strengthening and capacity building, projects
may best contribute by providing low level support over the medium term rather than a one-time
intensive heavy dose of support.

ITTC-JC(XLV)/2 Annex II
Page 71


Possibilities for creating effective partnerships have not always been taken into account during theplanning stage.

Gender aspects are neither always sufficiently recognized in the project design phase, nor subsequently
during project implementation. This is a critical area in which improvements are required.



Economic and social sustainability appear to be the most problematic areas after the completion ofprojects.



Exit strategies are generally weak and often focus on the continuation of the intervention through afollow-up second phase or another project which may not be forthcoming.

The project development process is often neither transparent nor adequately documented.



A project is sometimes designed or presented in a vacuum without considering or informing on otherinterventions in the same area or theme in the country.

Project implementationPro-active tools to improve project implementation such as mid-term review and evaluation have beenrarely used.

Project impacts often remain limited due to inadequate dissemination of results and lessons learned
undermining the viability of the investment made.

It has been difficult to adapt the project activities to changing conditions on the ground.



Steering Committees have focused their work on the review of the progress in relation to the projectwork plan but many of them have not played an active role in foreseeing risks and mitigating them aswell as removing other obstacles in project implementation.

Frequent delays in project implementation are due to external and internal reasons often reducing the
project’s efficiency.

3.

LESSONS LEARNED

Project designThe problem to be solved is not always clearly defined. As the projects are time and resource-boundinterventions, they need to be focused and their strategic contribution has remained unclear. Causes andeffects are not often correctly identified, and therefore the project is unlikely to be successful in solving
the core problem(s).

Projects that have been closely targeted at specific substantive themes and achieving tangible results
within the available resources and time period have good chances to succeed. Such projects are often
technically oriented and can deliver the targeted verifiable impacts.

Projects that have focused on problems in which a narrow project strategy is not deemed adequate
easily become complex. Simultaneous interventions in more than one impact areas tend to increaserisks and other problems during implementation. In these situations project design should be particularly
carefully carried out based on adequate information and stakeholder consultations.



The development objective to be contributed is often defined on such a general level (e.g. sustainable
development or sustainable forest management) that assessment of to what extent the project willcontribute to its achievement is not feasible.

The project development process is often not transparent and inadequately documented. It may beunclear if the instigator was an external body, a stakeholder group which is experiencing specificproblems, or other targeted direct beneficiaries.

ITTC-JC(XLV)/2 Annex II
Page 72Matters which determine the strategic value of a project are not always explicitly addressed in project
proposals. This has hampered efficient implementation and weakened the projects to effectively
contribute to their respective objectives.



Relevant development objectives, precise formulation of specific objectives and use of consistentterminology are important prerequisites for an unambiguous well understood project proposal.

Use of a logical framework matrix (LFM) facilitates project design and contributes to coherence andtransparency but is no guarantee for the consistency between activities, anticipated outputs andobjectives.



LFM appears to be considered more as a formal requirement for project proposals than a useful tool for
ensuring consistency in the project design between objectives, outcomes, outputs, activities and inputs.
LFM has sometimes been interpreted as a straightjacket without recognizing flexibility which isnecessary for successful project implementation in changing conditions.



Stakeholder consultation is needed for project design but it is often understood only as a formal
requirement and applied in a top-down manner. The purpose is not only to provide inputs to project
design but also to start building up ownership among stakeholders right from the formulation phase. In
particular, supply-driven projects (e.g. institutional strengthening and science oriented projects) tend tooverlook the importance of seriously involving stakeholders with the formulation of the project.

Adequate identification of beneficiaries and their needs in the regional and international level projects
may be missing, particularly if it is based on secondary information or stakeholder perceptions. The
resulting project design tends to suffer from weak relevance to country situations, limited impacts andsustainability.

Project design has not always considered other interventions in the same area or theme in the country
and building up effective links for sharing of lessons learned and information generated.

Project implementation
Inconsistencies in the use of terminology for key concepts and terms can lead to problems in project
implementation.



Mobilizing the participation of local communities has allowed for dissemination of the importance offorests to the communities and enhanced their commitment to SFM.



Project effectiveness can benefit from the involvement of several partners in implementation but it canincrease complexity and there may be lack of clarity of responsibilities and allocation of resources.
Expectations among partners from the design phase do not always correspond to the reality of theimplementation phase.

In field projects, site selection is often not optimal as related to accessibility, spatial linking of SFM andincome generation activities, and using the project sites for demonstration and dissemination purposes.



The limited achievements in community development are often due to lack of detailed prior project
identification with the beneficiaries and lack of assessment of institutional capacity and needs in
implementing such activities.



Project implementation and effectiveness benefit from a combination of implementing agencies andorganizations, which cover responsibility for national/regional policy formulation and implementation,
research and science, and on the ground implementation.



Developing and maintaining partnerships is an excellent concept to build up collaboration among
stakeholders towards SFM. Operational partnerships tend to take time to establish which often needs aphased process. Transparency and effective communication between partners through a project is a key
for smooth joint implementation and reduce unnecessary frictions. An NGO member is often a necessary
partner for witnessing and providing international credibility, as well as specialist technical know-how.

ITTC-JC(XLV)/2 Annex II
Page 73Due to changing operating conditions and accumulating experience during implementation, the adopted
project strategy may have to be modified at the request of target beneficiaries. This can be crucial for
efficiency, effectiveness and impacts of the project. Any modification of the strategy should beaccompanied by necessary adjustments in the logical framework.

Many projects have not developed or implemented a communication strategy representing a serious
limitation for project impacts.

Project staff turnover is a significant risk for implementation and needs to be minimized.



Excessive reliance on use of external consultants hampers the uptake of their recommendations and thismay affect the project's sustainability.

Projects with duration longer than 3 to 4 years may benefit from a phased approach (division into two or
more phases, which are separately submitted for approval and funding). Phased approach tends tominimize risks and builds up knowledge and capacity gradually while allowing for necessary adjustmentsin the proposal and budget for each follow-up phase.

Exit strategy is essential for ensuring project sustainability but feasible options have not always beenthought out before the completion of activities.

4.

GOOD PRACTICES

Project designNatural forests represent an important resource for present and future generations especially whenproperly and sustainably managed. Forestland use needs to be guided by long-term objectives based on
careful land use planning. Methods adopted should be environmentally sound, economically viable andsocially acceptable.



As part of the project development process preliminary surveys can help identify actors, their
expectations and willingness to participate, as well as to explain the project's challenges and the rights
and duties of everyone.

When projects are aimed at addressing problems which require simultaneous interventions in several
areas, project design needs adequate background information and stakeholder consultations. Preprojects or preliminary studies are often needed.

The design of complex projects often require institutional strengthening for ensuring sustainability. Tight,
clearly defined and realistic objectives are helpful in such situations.



The design of ITTO projects can benefit from the practical lessons learned in previous projects.
Demonstrating this strengthens the proposal.

Integration and spatial linkage of activities and outputs among relevant other projects strengthen project
proposals.

Description of the design and implementation processes benefits from details on the involvement of
stakeholders and the degree to which their ownership is perceived.

Complex projects often require an adequate analysis of the institutional set-up of the Executing Agency.

Dividing the project into successive phases can be made when it is deemed necessary. For phased
projects, there should be a clearly articulated end of each phase and an evaluation before starting a newphase.



Relevant monitoring criteria can be derived from the Logical Framework Matrix ensuring consistency
between the set objectives and the expected outputs and outcomes.



The purpose of LFM is not only to assure consistency of the project design but also to serve as aninteractive planning tool.

ITTC-JC(XLV)/2 Annex II
Page 74

Good project design is based on full commitment and proactive participation from those actors whoshould play indispensable roles during later stages of the project or even after project completion.

Realistic cost estimates of facilities and activities and the time required to achieve planned outputs
contribute to good project design.

Realistic exit strategies are needed already at the planning stage but they are often further revised whenexperience is accumulated during the implementation process.

Project implementationProject start-up workshops/meetings with the participation of all stakeholders are a good tool forlaunching the implementation process.

Project field sites selection based on representativeness and facilitated access would allow
generalization of results and effective demonstration.

For successful partnerships, clarity needs to be established on the roles and responsibilities of eachpartner prior to embarking on project implementation, including accountability and expected benefits.

Establishing a conflict resolution mechanism in advance is a good practice to prevent and handle
conflicts. A possibility to organize extraordinary project meetings is helpful when problems arise.

Technical studies, manuals and lessons learned need effective dissemination both internally within the
Executing Agency and externally to relevant government agencies, the private sector, forest
communities and NGOs. The information is also useful for education and training institutions.



Disseminating key information of the project’s results through newspapers, journal articles and electronicand social media can be highly effective for generating broader awareness and impacts. A specificstrategy for information dissemination to potential users can ensure systematic sharing of knowledge.

Modern means of communication are useful for regularly keeping partners informed on the projectprogress. Overcoming eventual language barriers needs a due attention.

Competence of project coordinators/leaders, consultants and national experts is important. Their Termsof-Reference and contracts should be specific in terms of the products and outcomes required, theduration of service, and the time frame for delivery of the products.



The project strategy needs swift modification if there are important changes in operating conditions.
Respective changes should be made in the LFM.



Project Steering Committees (PSC) is primarily a decision-making body while serving as an information
platform. PSCs should continuously assess the relevance of the project strategy for necessary
adjustments, and actively participate in removing constraints in project implementation.

Donors’ attendance in PSC meetings contributes to good communication, not only on project
implementation but also for sharing of the lessons learned. Their participation can also ensure that thelessons are communicated to policy levels, including ITTO itself.

In addition to regular audits, occasional more complete financial assessments would facilitate
implementation, including justification of budget items, improving accuracy of budget estimates, andpromoting strong accountability.

Competent project management teams built up at the start of the project enable smooth implementation.
Managerial staff rotation should be minimized while other staff can be rotated in order to make use of
their role in disseminating the knowledge and lessons learned in the project.

Swift assignment of government staff to a project can ensure smooth project start-up.

To mitigate the risks related to key staff turnover, the knowledge generated should be properly
documented, key documents filed and secured, and other information on project implementation safely
transferred in case there is a change in responsible personnel.

ITTC-JC(XLV)/2 Annex II
Page 75
Consultancies in the implementation of project's activities should not be conducted at the cost of
institutional capacity building.



A mid-term review is necessary whenever the project's implementation shows clear signs of weakness.

Project monitoring and evaluation are an integrated part of the project activities. Impact indicators areneeded for the objectives and performance indicators for the outputs. The means of verification need to
be clearly identified. Recording of project activities and outputs need to consider information needs ofmonitoring and evaluation.



The planned exit strategy may have to be adjusted to cater for changes in the project environment andthe expected post-project situation.