Reforming Forest Fiscal Systems
LAST UPDATED
06.30.2004
CHALLENGE
An active debate on concession policies and forest fiscal systems has taken place for a number of years. Several countries, encompassing a diverse range of forest types and associated industries, are implementing or considering new approaches to allocating rights to utilize forests. While their situations are different, in all cases the objective is to identify the practical ways to ensure that forests can be utilized sustainably and make a more positive contribution to national poverty reduction objectives (as defined in PRSPs or similar statement of policy) through stimulating growth and providing regular and enhanced revenue flows to governments.
APPROACH
In this context, the International Workshop on Reform of Forest Fiscal Systems took place October 19-21, 2003 at the World Bank in Washington DC. The workshop provided a valuable forum for frank discusion on the political economy of forest fiscal reform.
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The Workshop had an immediate impact in in Andrha Pradesh, India. To offset carbon emissions generated by participants' travel to Washington DC, 147 tons of carbon dioxide reductions were purchased from a woman's group in Powerguda village. The group used the US$645 to plant Pongamia Pinnata trees. In addition to sequestering carbon, the seeds of the trees also produce an oil that the villagers can use in place of fuelwood. |
RESULTS
Over the course of the two-day workshop, participants discussed their experiences with such reform processes, focusing on lessons learned in how to manage the reform process and best practices for applying various forest fiscal instruments. Specifically, the Workshop focused on three key themes:
- How to define the mix of fiscal instruments and set the right levels?
- How to use revenues collected?
- How to manage the politics of forest fiscal reform processes?
Read workshop proceedings for more detail.
The following year, on May 3, 2004, PROFOR organized a side event at UNFF-4 on reforming forest fiscal systems. Representatives from Ghana and Brazil delivered updates on fiscal reform in their countries since the October 2003 workshop.