Dora Carias Vega University of Melbourne
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1 Understanding alternatives for organizing timber production in community forestry enterprises: experiences from Quintana Roo, Mexico Dora Carias Vega University of Melbourne
2 What are community forestry enterprises? Devolution, about 25-30% of developing country forests are in the hands of indigenous communities (Scherr et al 2003, Rights and Resources Initiative 2014) Progressive trade liberalization, changes in demand and supply for forest products: rural smallholders have had to adapt productive capacities, organization, marketing abilities (Donovan et al 2008) NGOs, governments, development agencies now support commercial exploitation of forests through community forestry enterprises (CFEs) vs. only subsistence activities in the past; way of re-distributing timer benefits, reduce poverty, promote local development. Key players in forest sector, more understanding on their behaviour is necessary.
3 Key features of CFEs Focus on commercial exchange of timber and non-timber products Profits used to meet multiple goals (social, economic, cultural Community is self-defined in terms of people and area CFEs are owned, controlled and governed by said community Benefits go to the entire community (cash, investments in public goods and services) Based on collectively owned forest, not private ownership
4 CFEs in Quintana Roo, Mexico Communal organizations known as comunidades (indigenous people communities) and ejidos (groups of rural people) own more than half of Mexico s forests thanks to the Mexican Revolution (Cubbage 2015) Forty-three per cent of land in Quintana Roo is owned and controlled by ejidos (Snook et al 2003); land and its forests are under a common property regime Agrarian reform and land redistribution arrived with promotion of chicle (gum, latex of a local tree) cooperatives; forestlands were assigned with needs of chicle producers in mind; afterwards priorities changed, areas for agricultural production became more important.
5 CFEs in Quintana Roo, Mexico Land redistribution also used as a colonization mechanism to build sufficient population to receive statehood in 1974 (immigrants from many parts of Mexico) : ejidos forced to sell their timber (mahogany, cedar) to logging company Maderas Industrializadas de Quintana Roo (MIQRO) and a few other independent contractors; only obtained a harvesting right fixed by government but acquired skills 1983: Concessions to MIQRO end, Plan Piloto Forestal- PPF (Forestry Pilot Plan) is implemented
6 CFEs in Quintana Roo, Mexico Assumptions behind PPF (Galletti 1998): Community forest owners have vested interests in protecting forests because they are a form of community capital; Forests will not be destroyed if they provide economic benefits to their owners.
7 CFEs in Quintana Roo, Mexico PPF was a collaboration of ejidos, Mexican government, bilateral aid program with Germany (Acuerdo México-Alemania), foresters, urban intellectuals Forestry enterprises are established with credits, technical assistance, political support; ejidos are responsible for forest management Sociedades Civiles (secondary level associations) are formed as independent for- profit NGOs that provided technical assistance and made aggregate management plans; wanted ejidos as price setters and alter industrial structure.
8 CFEs in Quintana Roo, Mexico Started selling standing timber but developed to roundwood to the factory; Rented equipment was eventually replaced with own equipment Constitutional Reform to article 27 aids emergence of de facto but not de jure divisions of forest areas.
9 Types of CFE organization Collective ejidal enterprises, workgroups, some individualized negotiation and sales. Ejidal enterprises: decisions about forest and enterprise are collective, made in the General Assembly, operationalised through traditional community administrative structure (comisariado ejidal), president of comisariado ejidal serves as manager.
10 Types of CFEs Workgroups: Decisions about forest are split into groups; comisariado ejidal loses control over commercial aspects of forestry; timber revenues go directly to each workgroup; workgroups contribute to overhead costs of forest management. Workgroups form along ties of families, friends, caciques (traditional strong men, informal leaders) Individuals: Left out of workgroups, must negotiate with buyers alone, socially vulnerable.
11 Types of CFEs Workgroup divisions arose aided by the Reform to article 27; Were a reaction to corruption/mismanagement of collectively-owned firms; information was controlled by ejido elite ; diminished ejidatario participation; ejidatarios wanted control of timber revenues. Divisions make forestry business more expensive for buyers (risky, time consuming); use contracting system for equipment, sawmills left from ejidal-level organization are managed as maquilas or service providers (inefficient). Investments in social goods and services are reduced, ejidatarios get more cash and decide how to spend it.
12 Types of CFEs Ejidal enterprises invest more in social goods and services, have made managers more accountable for their actions. Coordination of higher processing is easier, all decisions are centralised, forest is managed as a block. Buyers prefer ejidal-level organization, more formalised administrative structures. Forest management for both workgroups and ejidos is considered of good quality, oversight from local authorities works as an incentive for good management.
13 Challenges Reduce information asymmetries between buyers and ejidos (which ejidos can they trust, reduce uncertainty/risk) How does organizational choice affect their possibility for value adding? What kinds of incentives must be built in? If ejidos don t have technological possibilities for high value adding, teach how to negotiate contracts from which they can benefit.
14 Overall challenge How do you promote a competitive, efficient forest sector that respects ejido autonomy?
15 Thank you!
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