Forest Law Enforcement and Governance

Â	 Widespread failure of forest governance – characterized by illegal logging, associated illegal trade and corruption -- directly undermines any nation’s attempt to achieve sustainable economic growth, societal equity, and environmental conservation.Â

 

This puts at risk poor and forest dependent populations who rely on timber and non-timber forest products, undermines responsible forest enterprises by distorting timber markets, and results in a loss of revenue that could be invested in sustainable forest management or economic development. The World Bank estimates the (global) annual market value of losses from illegal cutting of forests at over US$10 billion -- more than eight times the total official developmental assistance (ODA) flows to the sustainable management of forests.

 

Illegal logging can be poverty driven or associated with commercial exploitation of timber. The underlying causes of illegal logging (and other forest crimes) are complex, and often lie outside the forestry sector. These comprise a general failure of governance and prevalence of corruption, including unclear, controversial or simply nonexistent policies and legislation governing the use of forest resources; weak institutional structures; and inability to monitor and enforce the regulations applicable to the use and conservation of forest resources. They are also difficult to address as politically well-connected interest groups tend to benefit from a status quo and will actively resist change.

 

The Bank’s Forest Strategy acknowledges illegal logging and lack of appropriate forest governance as a major obstacle to the efforts of client countries to alleviate poverty, to develop their natural resources and to protect global and local environmental services and values. The World Bank actively supports regional forest law enforcement and governance (FLEG) initiatives and hosts a multi-donor partnership on FLEG in support of these initiatives. The PROFOR partnership also addresses forest governance issues, with a greater focus on fostering forest institutions that enable good governance.

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