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PROFOR

Reforming Forest Fiscal Systems: An Overview of Country Approaches and Experiences

Workshop Proceedings

Forest fiscal systems - specifically concession and revenue systems - provide the tools for mobilizing forest revenues, motivating private industry operations, and meeting broader policy objectives, including sustainable forest management (SFM), poverty reduction, and conservation of environmental values. Several countries, encompassing a diverse range of forest types and associated industries, are implementing or considering new approaches to designing and implementing effective fiscal systems. In this context, the International Workshop on Reform of Forest Fiscal Systems took place in Washington DC from October 19 - 21, 2003, to provide a forum for frank discussion on the political economy of forest fiscal reforms. Participants from seven countries - Brazil, Cambodia, Cameroon, Ghana, Honduras, Indonesia, and Nicaragua - shared their experiences in the reform process.

This publication consists of the background papers prepared by Cambodia, Cameroon, Ghana, Honduras and Indonesia for the Workshop as well as a summary of the Workshop proceedings. The Workshop was organized and funded by the German Technical Cooperation (GTZ), the Program on Forests (PROFOR), UK Department for International Development (DFID), and the World Bank Institute (WBI).

Reforming Forest Fiscal Systems

Forest Fiscal Systems Reform at UNFF-4
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. Side event summary.

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.

A "Carbon Neutral" Workshop
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 will use 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 will use in place of fuelwood. The full story - "Practicing What We Preach". Offset Certificate

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. 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:

Reforming Forest Fiscal Systems: An Overview of Country Approaches and Experiences Workshop Proceedings:
English
French
Spanish
Briefing Note Briefing Note:
English
French
Spanish
Workshop Presentations and Documents:

Agenda
Aide Memoire
Concept Note<br> List of Participants

Case Studies Presentations:
Brazil
Cameroon
Cambodia
Ghana
Honduras
Indonesia
Nicaragua
Cameroon Forest Industry Association

Thematic Working Group Presentations:
Fiscal Instrument Mix
Allocation of Revenues
Managing the Politics of Reform