Research on Forest Policies for Philippine Development Planning: A Survey

Page 1

PhilippineInstitutefor DevelopmentStudies -WorkingPaper 81-01

RF_F_AROIONFORESTPOLICIES FOR PHILIPPINE Dh-%m_/DR419r£ PLANNING: A SURV_

MARIAN SEg_-IE

IES __

April 1981 PhilippineInstitutefor DevelopmentStudies

The views expressed in this study are those o£ the author and do not necessarily reflect those of the Institute.


TABLE

OF

CONTENTS

INTRODUCTION

I

Special Characteristics Production Broad Forest Management S_ope of the Study

PART

I: ECONOMICS A.. The

OF

TIMBER

Optimal

of Forest

1

Issues

4 5

PRODUCTION

6

Harvest

Age

of:Forests

Economic Theory of Forest The Philippine Case

B._ Factors Leading of Forests

Ha_vesti_

to Overeutting

6 6 _6

of,.

The

Selectiv_ L_ggÂŁm@_J,S_ Al.le_ble Annual Cut _e_-minmtio_' EPonomic Aipe_ts Common Property Consida_at_o_ Use of High Discount Rates Pricing of _npu_ a_d O_tp_s

PART

II:

THE

Forest Upland

FOREST

RENEWAL

III:

25 _6 27

PROBLEM

33

Renewal through Private EnZerllr4_e Development and the Shifting

34 3_

Cultivation Problem Watershed Development

PART

_A

MULTIPLE

USE

FORESTRY

Wildlife, Recreation Minor Forest Products

and Rangelands

45

47 49 50


PART

IV: ECONOMIC

OF WOOD

Supply and Demand Products

PART

V:

PROCESSING for Philippine

52 Timber

52

Competitiveness of Philippine Wood Exports Resource Productivity Studies

54

The Log Export Ban Marketing Aspects Processing of Minor

61 64 67

RESEARCH

AND POLICY

Forest

Products

ISSUES

Introduction Basic Issues in Fereetry Planning Concluding Remarks

D_velop_ent

59

69 69 71 78

REFERENCES

List

of Tables Table Table

List

I. 2.

Some Financial Maturity Models Forest Research and Policy Priorities

9 81

of Figures Figure Figure Figure Figure Figure

I. The

Zero Interest Models of Forest Harvesting 2a.The General Present Net Worth Model 2b.The Faustmann Model 2c.Duerr's Present Net Worth Model 2d.Tho Maximum Internal Rate of Model

7 ll 11 11 11


RESEARCH ON FOREST POLICIES FOR PHILIPPINE DEVELOPMENT PLANNING: A SURVEY

by Marian

Segura-de

los Angeles

INTRODUCTION

Special

Characteristics

Forests

of Forest

may be distinguished

te1_ms of their potential The product/on which

of forests

(Gregory,

long time pemlod

(3)

dual nature

(4)

high ratio of inventory

(5)

flexibilities

(6)

aggTegative

(7)

extemnalities

of standing

in

land-intensive.

on timber relevant

production to forest

refers

or logging, forms.

timber

involved

of standing

in production

timber to annual

in production nature

of forests

tree

of cutting

is necessary Thus,

production

and marketing

to the standing

The activities

into more usable

being

mesources

1972):

(2)

to a market,

dependent

pecul_arities

immobility

or "stumpage".

natural

and their

is largely

(i)

Immobility

f-tom other

renewability

in turn have the following

management

Production

which has economic

and transporting

for the conversion

in addition

value,

the trees of stumpage

to the fact that &Towing


2

stumpage forest

entails

grower_

the use of resources

so must

its due returns. the pricing forest:

the economic

Valuations

harvester/logger,

Compared requires

of logging have

widely

when

the forest

longer

species.

hardwood-producing

forests

country's

have

forests,

which

evolved

conditions

of time as an important

Philippine

should be made with respect

is not the

so when

ninety

over generations

trees

the trees

forests,

or

per cent of the

of adaptation

Being

to the production

to harvests

on

from the

that of growing

dipterocarp

of th_ tropics.

input

grower

and more

constitute

be accrued

forests.

activities,

time periods_

to the

implications

are to be cut and removed

to most productive

are of the hardwood

renewal

activity

as in the case of Philippine

relatively

the bioclimatic

must earn a return

of such returns

of the tree which

they may differ

and

to

so, due consideration

of dipterocarp

and the conduct

forest

of forest

activities.

Such time intensity dual nature

of standing

final product decision liquidate

of forest production

timber:

and the factory

to harvest

which

the product

the producing

U'The standing

factory.

produces

is compounded

by the

tree is at once the

that producto _' A

is thus also a decision

to temporarily


3

Coneomittant

with

ratio of inventory stock relative preserve

to annual

production.

to its growth

or improve

protection

long forest production

is high.

the g_owing

and silvicultural

Flexibilitles degrees.

This implies

treatments

there

and marketing

time it takes to covert

them into iogso

(a) the ability and,

to extract

(b) the ability

in gmowing

to postpone

to

in varying

flexibility

stumpage

products

harvest

in terms

and the short

On the other

in forest management

multiple

outlays

such as forest

come

is the one-way

involved

flexibilities

that

g_owing

may need to be made.

of the long time period

also the multiple

is the high

That is, forest

stock on activities

of production

On the one hand,

periods

hand, there in terms

from forests

are

of:

and trees,

and still produce

the same

goods and services.

The aggmegative be treated

individually,

set of ecological in the p_ocess a forest

nature

of forests

but as a whole

conditions.

use up large

Since tracts

area are significantly

addition,

the other services

are also important. completion

The problem

of these other

trees

communities

by forest produce

the following:

cycle,

of managing

growing

should not within

grow "aggregatively"

of land,

that forests

products

that trees

community

affected

include

of the hydrological

and the l_ke. management

These

means

habitat forests

In

are non-timber

recreation,

for wildlife, therefore

and services.

and

sumrounding

activities. which

a

scenery,

also entails


Broad Forest

Management

The question renewable

resource

Philippine

economy

recognizing

of how benefits such as forests can therefore

that policies

impact on physical, resou_oe

Issues

economic

conservation, l/

include:

physical

services;

demand

analyzed

and economic

of society

system,

forest management

through

and services_

are relevant those

a system

licenses,

Thei_

management

are used by private ship are:

controls

individuals.

"(a) to promote

g_eater

control

and of resoumces

to such considerations

Philippine

where govel_nment impose

considerations

of the individual

under

and permlts.

in

mechanisms.

they are used privately

basis_

these

by

their

considerations

supply of forest products

and market

Though

for the

understood

such as the producers

in general.

a potentially

best be initially

for such products

issues which

from using

be optimized

and institutional

from two viewpoints:

the economic

could

More concretely,

used in forest production;

Policy

affect

and costs

components

and consumers; forests

therefore

owned,

concessions, is a co-management

on the manner

The main objectives efficiency

of

and those

are publicly

of granting

may be

in which

forests

of co-manager-

in the exploitation

t--/Theter_ "conservation" here is b_oadly of a resoumce, following Ciriacy-Wantrup ( 1969.

defined

as"wise

use"


5

and use of timber

and other

forest resources_

and growth

of the forest

employment

to the rural communities

life in these areas." concepts

(Reyes,

and policies

such objectives

industries

so that they may provide and help improve

1978).

therefore

with

Effectiveness

depend

in the privateand

not be in harmony

(b) to promote

on explicit

public

terms,

stability continuing

the quality

of

of conservation recognition

which,

of

at times

may

each other.

Scopeof the Study This review forest

will therefore

management

incorporated

economic

looks

Of course,

principles

which have

renewal

activities.

forest renewal

III focuses

processing raised

industries.

bottlenecks

for timber

of access

are

and

in dealing around

basic

and/or

some important

use forestry.

production.

It

and use of timber

of trees,

have bearing

parts

for the country.

eoonomic_

will revolve

lack of forest

issues

on policy-making

of the while

Part IV tackles

Part V thensynthesizes

in the first three

of timber

simultaneously

management

Part II tackles

on multiple

and private

and demand.

allocation

which

Physical,

discussions

led to overcutting

problem

public

of how peculiarities

are treated

on forest

into intertemporal

factors

Part

of supply

I focuses

on specific

decision-making.

considerations

issues.

Part

in terms

into forest

institutional with such

issues

focus

the research

and also summarizes

the wood issues

forest policy


PART ECONOMICS

Economic able natural demivation zation

literature

resource

criteria_

and resource Relevance

and

involved

in forest use.

THE OPTIMAL

Economic

HARVEST

Theory

Interests harvest

scientists

yield

the MSY Theory of max/mum

characteristics

from forests

of timber

arise

production:

and externalities

Harvesting

developed

(MSY) theory

and forest managers

on resource

around the non-optimality

earlier

for detemmining

says That The stock

suslainable

optimi-

of the resource.

production

periods,

(I) the

certain

market

stock

characteristics

among economists

as guide

use under

renew-

AGE OF FORESTS

of Forest

rates in_tially

sustained

to sustained

long renewal

interests:

of various

on the long-run

important

renewability_

A.

rate of resource

of such concerns

of a potentially

on the following

(2) the effect

potential

PRODUCTION

on the exploitation

use criteria

from at least three

OF TIMBER

focuses

of an optimal

I

productivity.

advocated resource

of the maximum

by most natural

use rates.

of a resource In forestry

Briefly,

must be maintained terms, this

means

at a level arriving


at a rotation

or cutting

cycle which

The following

variations

of this theory

considerations

as:

(b) maximizing

mean annual

Expressing following

these

(a) maximizing

yield criteria

maximizes include

net renenue

in revenue

(excluding

terms,

graphically

_R .--</_

C

"/

...l'/z /

/I

periods

chosen

as follows:

"

// /

productivity

i

}

D

A

4

The zero interest

Here, the total revenue carginal

charges).

(t) I

B ''_

I.

and

/

0

Figure

and cost

/"

,/

/ /

yield. 2-/

////'//_

Costs

/

total

interest

the rotation

may be depicted

Revenue Total

/ /"

revenue

mean annual revenue;

•

ponding

maximum

curve

models

of financial

follows

characteristics)

the shape

maturity.

(and cortes-

of the usual

total

2J'Rotation" means the period of years required to establish and g_ow timber to a specified condition of maturity. The specific term used for uneven-aged forests is 7'cutting cycle".


product

cu_ve_ where time

the tGtal revenue this is because

(t)

curve,

R(t)

economic

yield

is the variable does not emanate from timber

only after some degree

of maturity

stand.

regeneration

OC

represents

The rotation maximized; when

OB

average

criteria timber

period

OA

when average

net annual

neglect

the opportunity

Note that

from the origin_

production

has been reached

can be expected by the forest

costs.

is arrived

annual

revenue

for a considerable

input.

at when total

revenue

is maximized;

is maximized.

Because

cost of locking

span of time,

revenue and

is

OD

such ha?vest

capital

into standing

they have been called

"zero

interests _ models.

Due consideration of the various

of capital

optimization

criteria

cost came with the development under

shown by for_nulas i-5 in the following and Ten, hardeSt965). included._or

comparison

The three purposes

various

table

assumptions,

reproduced

"zero interest _'models (formula

6-8).

as

from Bentley are also


Table

1.

Some Financial

Solution

Maturity

Expression

i.

General present net worth

2.

Faustmann's

Maximized

soil

L=

R(t) - C(l+i) t

Manager

fixed

Land fixed

value

Duerr_s present net worth

[R(t)/(l-i) t] .- C

4.

General internal rate of return

i

Boulding's internal rate of return

i

6.

Maximum revenue

7.

Average annual gross revenue or mean annual value increment

8.

Forest

a

_ t/-R_-+ L _,; C+L

a

= t/RTti%f C

total

Manager fixed; land value is zero _ one rotation 1

Capital

fixed

Capital fixed_ value is zero

1

Interest rate is zero ; one rotation

R(t) t

Land fixed; interest rate is zero_ no regeneration cost

Land fixed;

average annual net revenue

R(t) - C t

used are as follows:

=

rotation

R(t)

=

revenue

C(t)

=

cost

i

:

interest

length from harvest

function rate

interest

rate is zero,

_/For purposes of simplication_ intermediate costs and revenues are not reflected in these models.

t

land

R(t)

rent or

Notations

Assumptions

(l+i)t _ 1

3.

5.

Special

_r --R(t)-C(iei) t - /L(I+i)t-L] (l+i)t _ 1

rent present net worth or land expectation

Models _/

in year

t


I0

ia

=

average

interest

L

-

land value

z

=

return

to production

versus

an infinite

model,

(equation

(equation

surplus

Duerrls rotation return capital

models

present

land values.

land

fixity of and over one rotation

The general

present

enterprise

its market

land as fixed_

price

(equations

(equation

and maximizes

4 and 5) maximize

from each other

only

The Faustmann

number

all economic

of rotations.

3) maximizes

to the entrepreneur.

net worth

has access to

and maximizes

assume an infinite

net worth

returns

and differ

of:

that goes to the entrepreneur.

Both models

period_

rate of return)

and, maximization

that the forest

it awards

2) assumes

to it.

in terms

of rotations_

I) assumes

all econon_ic surplus model

differ

constraints,

number

all factor markets_

(or internal

to the entrepreneur

The first five models returns

rate

over one

The internal

rate of

the rate of return

in terms

to

of the inclusion

of


11

/J

I'

_" Fig,

2a째

j

The Net

F

General Present Worth Model

/__]_l

Fig.

2bo

_ _)

_--

F Fig.

2c.

N,B.:

Y-axes

Model

_ _ (_)

E

Duerr's Present Net Worth Model

All

The Faustmann or Soil Rent

are

Fig.

in

logarithmi_

2d.

scale,

The Maximum Internal Rate Return Model

of


12

The most accepted the first three,

and widely

although

used among

controversy

still continueso ._/ Such controversy growing

can be viewed as one which

ventures

in terms of capital

in terms of which constraints

these

on which revolves

can compete

efficiency.

ret_mn aro_md

be economically

constraint, able

(equations

However,

economic vary

value

(equation

rate of return

the forests. sound

2)3 _en

models

When land

for him to

capital

would

and

is the

be more applic--

4 and 5).

equations

have been argued latter

then it would

the internal

timber

the forest manager is faced with_

is the constraint,

land expectation

whether

The five criteria

for managing

are

to maximize

with other

the time frame he is considering

maximize

five models

4 and 5, _ich

to be inapplicable

for forest

is said to be unable to compete,

activities

due to its time-intensity.

population

growth

exerts

represent

_owing_

a lost of p_essure

of land expectation

most calculations

in forestry

rates

which are lower than the narket

3/See for, instance_

value

the articles

because

for countries

on the land,

LDCs maximization

of interest

to capital the

with normal.economic Moreover,

decisions

return

has been

where

as in the

advocated.

have been based

Thus,

cn the use of

rate of interest_

of Thompson

(i966)

Holt

(1976)_

Smith (1967):_ Samuelson (1979) and M_rs'_1977)o The second and third models a_e actually variations of the general present net worth model.


13

and which generally approach tha_ of a social d/acotma re_ and Re/fly, 1976).

A rata which_uld

(Fe_guscm

bet_a_e__en_sd

w_tld

be in the vic_.n/tyof 5% (_/e,,e, 1977).

The problem of deciding on the exploitation ,,ateof renewable resoumces from sooiety's point of view has been treated in the following manner:

(l) using a safe minimum standard to avoid adverse

ecological effects of ove_exploltation; systems under steady state conditions;

(2) analyzing resource (3) operationalizing

resource use dec_slo_tsby looking into adjustments between supply and demand,

Implied An all these is the desire to preserve the

positive environmental influences of forests_ and the need to consider Inter_empoPal/_ntergenerational equity in access and use of a potentlally renewable resource.

CiPiacy-Wantrup (q96)) advocated that as a general Pule, a llm/t to the exploitation of potentially renewable resources must set to prevent _mpalrment of its biological _enewal.

be

This implies

a criterion which avoids a critical zone beyond which resource depletion becomes irreversible.

Analysis of resot_ce use using steady state systems may be categorized as follows:

(a) those which use dynam/c optimization

models to derive steady - state conditions, and (b) those which use


a static

framework,

with the steady

Among those who use dynamic (1970), Btt%_tand Cummings (1975).

Plou_de

problem

investment welfare

exploitation.

function

their objective the profits

conditions: pool, and resource

resource

function,

control

market.

fomestry

Naslund

Among those

is harvested

using

Schreuder important

exploitation

optimality and

a social

and Wright

have,

as

value

of

from the resource,

combinations

of the following

from a common or monopoly framework

exploitation.

contributions

forest

with the

production

Naslund Faustma_m regulation

or private power

in the

is Smith

(1968)

In the case of

(1968) and Samuelson

generalizes

known as the traditional

vis-a-vis

of the present

a static

rules째

and Wmight

in dealing

and optimize

competition

with fisheries

(1969),

fomest

various

are Plourde

Watts,

examine

the harvest

undem

is perfect

come up with a mule which become

the maximization

theory

among those who have made determining

industries

f_om selling

whose work deals mainly

factor

Beddin_Tton, Watts

(a) the resoumce (b) there

discount

as given.

models

of variations

Bumt and Cummings

as well.

obtained

using optimal

optimization

uses the calculus

innatural

conditions

(1970) and Beddington_

of the use of a social

in resource

state

(1979) ape

to the problems and Samuelson s formula model).

of

both

(which has


15

The more important to incorporate general

the decision

problems

over time, temporal

growth

allocation yield

via golden

For this reason "sustained

rates,

in a similar

conducted

harvest

"economic

into more is to be accumulated

rates

and inter-

come up with

as economists

golden

sustained

rules

derivations

have treated

(Plourde,

1970).

yield _'has replaced

of such concepts

supply,

to harvest,

mere

curves.

ECHO

of ECHO

incorporates

for intensive

of land for commercial

ECHO is more

considerations

growth and renewal.

needed

deter,nined for national

(1960),

link harvesting

(1975) in his formulation

timber

investments

which

and growth

Basically,

with

could also be done using

demand

demand,

by Walker

concepts

simultaneously

sloping

fashion

optimization).

ment, and allocation

by Gaffney

growth

Thus, they

rules and modified

the term

and demand

these

use.

capital

try

yield".

was recently

of timber

exploitation

population

of forest

with national

(economic

out is that such models

of resource

The operatlonalization decisions

to point

such as the rate at which

consumption

of sustained

thing

timber

forests

Faustmann_s flexible

forest manage-

in the U.S.

in terms

The amount

production

approach

supply

were Although

(as pointed

of handling

out

downward


16

The Philippine

Case

Philippine yield_

which

Zinuous

forest management

is defined

or periodic

for the purpose approximate

As expounded

inzerval which

growth

generations_

industries_

incomes_

and,

of harvests_

(a) forest

(I)

unit_

Revilla

of social

points

for sustained

the region_

time an

are the elements time

is supposed

to have

for the benefit

of

in the forest

(d) provision values.

out the following:

yield

unit

and the area on

of uncertainty

of communities_

(e) protection

the area basis nation,

conservation

"..icon-

in a working

the periodic

This

sustained

or use."

are obtained_

(b) amelioration

In the same paper_

1559):

practicable

and harvest

is to be practiced.

(e) stabilization

optim_n

(1977) the following

continuity

results:

products

at the earliest

by Revilla,

yield

(P.Do 7055 P.D.

of forest

during which the products

the following

regular

between

yield_

sustained

future

production

of achieving

balance

of sustained

as follows

aims to promote

may be the

or a forest management

of


17

(2)

forest management, should

(3)

explicitly

sustained

which make

e__licit

unit level,

p_oducts

economic

supply

and services,

vis-a-vis

sustained

its ability

and_ the economic

to

constraints,

of the economic

to be in order.

In fact a brief

lead to forest

Such study will

For the latter,

He adds that the

and consideration

use seems

of such forces which

of Philippine

concept.

yle_d

for sustalnability,

recegnition

bear this out.

sustained

an area an economic

and services,

forest

the forest management

of the

size of the area

to allow

which govern

nation.

yield

(or do not make)

for goods

may be manipulated

issues

sustained

area, such as the

Indeed,

makes

unit or it does

a reinterpretation

factors

meet the demand

yield

either

w

into an economic

B below)

considerations,

situation

unit in a given

thus, proposes

examination

economic

';aforest

concept

forces

consider

activity,

in the case of the firm_

not.

yield

an economic

such as _%-Dowthand profit

an economic

Revilla,

being

concerns

trade,

(Section

have to be conducted

and from the standpoint

and demand

foreign

overcuttlng

shall

both at

of The

be the broader

for various a_d the like.

forest

timber


18

In fact, the only comprehensive alternative

futures

PREPF study

(1977), which

supply

of forests

with

ourselves

for a possible

then, we should limitation since

invest

country's

balance

attention

should

stocked)_

to augment

of payments

While the PREPF be considered

when

futures

various

schemes_

similar

issues

2000 era.

important

To prepare 2000-2026

and consider though,

in view of the

This implies

of forests

that more

(denuded

out the trade-offs

on forest

various

issues

timber

and inadequately

tilnber supply.

to quantify

Thus_ policy

potential

may not be feasible

problems.

it does not attest alternative

PrOducts.

not be felt between

activities

are also

study points

deciding

of physical

during the period,

renewal

be paid to renewal future

the post

The latter

from wood exports

use is the

timber

balancing would

crisis

in forest

of wood exports.

earnings

between

during

timber

forest

Philippine

for wood products

now and 2000 A.D_, but rather

of the country's

on the determination

for, major

that problems

and local need

to Philippine

focused

and demand

This study reveals supply

respect

treatment

exploitation

the costs

for timber

which

and renewal

and benefits

implied

still remained

of forest untaek!ed0

rates_ by

supply and local requirements.

such as the log export ban_ reforestation

the allocation

need to

land for various

using

uses,

and


19

Nevertheless,

workable

with the PREPF studies policy

issues,

can provide

have already

are the works of Revilla

Revilla dipterocarp allowing ations_

(197@

forest

In this regards and expom@ should

of these

(1974).

of

model was used, and cost consider-

in the country and demand

of Nguyen

together

considerations

to determining and forest

(on wood supply

with

the national

renewal

production,

e_nd demand

problems.

investment,

interactions)

prove very useful.

All to_ether,

then_

make use of Revilla's benefits

through

would provide national renewal

Host noteworthy

of such a study on a represent-

approach

and Sibal (on wood export

integrated

to such

for the management

wood exports,

the studies

answers

rate levels_

_l_ply

integrated

rates,

definite

simulation

concessions

wood,expert

exploitation

a model

and interest

which_ when

(1978)_ and Nguyen

The application

would allow for a more forest,

Sibal

A computer

of the logging

investment

more

tools_

developed.

(1978)_

stands.

among others.

forestry

been

developed

vaz_ying demand

ative sample

analytical

model,

define

the use of Nguyen

a workable

forest policy rates.

an extension

analytical

issues

of the PREPF

in explicit and Sibal's mechanism

such as forest

terms

study which costs

studies,

and

among

for investigating exploitation

would

and

others,


2O

B.

FACTORS

LEADING

TO OVERCUTTING

The rate of forest drain per year

during

for the period

hectares

misleading actually and

include

much hiÂŁher

and 204,000

1977).

the following: is based

the actual

(2) the PREPF

forest

(PREPF,

per year

because

has been estimated

seventies,

1969-1976

of both rates 172,000

1962-mid

OF FORESTS

drain

than those

figure

hectares

Criticisms

hecZares

per annum

over the estimate

(i) that the calculation on the arithmetic for the earlier

of the recent years

is partly

cover using LANDSAT

at 172_000

based

mean which years

is

are

(Arellano,

on an estimate

photointerpretation_

of

1979)_

of 1976

the methodology

of

4/ which has been

subject

to varied

The more important

thiDgs

which have led to forest follows

(Segura_

non-forest priate

use_

policing

regulations_

use problems

forest

to note though_ These

factors

would be the factors

may be summarized

et al 1977):

(I) land

(2) slow rate

of land classification_

of forest

ands,

short durations.

drain.

criticisms.--

users

(4) granting

to conform

_/This occurred cover estimates

while

with forest

of uneconomic

The first two factors

elsewhere,

classification

sized

biased

rules

and

concessions along

the last two will be analyzed,

during

towards

(3) inappro-

will be treated

on several occasions were discussed,

as

which

with land-

together

the PREPF


21

with other factors following

not pointed

subsections.

environment

out in the earlier

Although

under which

forests

the main

will also be discussed

The Selective

Logging System

of the Philippines

is via the selective

trees.

for the cutting trees while

The following

residual

inventory,

of trees

for cutting

which would grow inventory provide

basis

checking

conducted

for predicting

whether

destructive

timber

growth

that adequate stocks

the harvest

growth

(1978) evaluation

system

overmature_ of residual tree marking,

(TSl).

residual

The marking

stock

in the future. operations

(SLS)

is left, Residual

in order

to

the next cy.clic cutj as well as for

a healthy

that_ if properly

system

the system;

improvement

has taken place).

to assume

management

logging

damage has been done to the residual

losing

Revilla_s indicate

after

the healthy

stand

into harvestable

for the uneven-aged

of mature,

characterize

and timber insures

yield

and removal

ensuring

phases

is conducted

technolo-

(SLS)

of sustained

and defective

relevant

briefly.

The implementation

which provides

in the

here is the economic

had been overcut,

gical aspects

forest

focus

study,

Timber

(i.e.,

stand improvement

of the newly

is

cut forests.

of the selective

implemented_

trees

logging

system

SLS could be one suitable

for our dipterocarp

fomests.

The problem


22

seems to lie partly

in the lack of implementation

of SLS.

Such deficiency

system's

following

(i)

shortcomings

the system allowance ment

in implementation

for variations

units in factors

accessibility, economic

(2)

conditions_

lack of flexibility

residual

nationwide

and payment

because

for the marking

is _inancially the two logging cannot whereas

be

concessionnaires Although

sound in terms set-ups

generalized

Rebugio's

study

site

density,

and

of the use of a

logging

operations,

is "difficult

opt for overcutting

of returns

study points per peso

(Rebugio_

for all logging calculated

inventory

the system

a recent

analyzed

goal of the

on residual

then that because

of fines.

manage-

and,

as a means of contr_lling

implement, _'5-/ most

timber

of stand

study:

without

such as climate_

stand, reliance

It is possible

by the

out in Revilla's

among

adequacy

fixed percentage

may be caused

as pointed

is implemented

of all three phases

1979)_

set-ups

net return

to

of trees

out that

investment

SLS

for

such finding

in the nation.

Moreover,

per peso investment

5--/Thatthe system is difficult to implement has been pointed out in several occasions, one of which was during a PREPF workshop attended by the researcher.


23

to fall within

1.70-2.56,

a recalculation

for a lower share of the allowable account

of government

only 0.269-0.67%

rules

net return

Until more rigorous findings

should

following (Agbayani, instead

yield

assumption cute

and

study

AAC determination

study

percentage

stand

however,

such the

only one cyclic

costs

procedure

log production

out

e1_

be the case under

improvement

Rebugio_s

which

are spent

were overlooked. except

for the

out of the allowable

flaws.

of the selective

must be conducted

came up with

For example,

considered

from similar

a re-examination

on

have also been pointed

(b) treatment

follows

it also suffers

Moreover,

are conducted

series of e1,_s as should

concepts;

harvested

log markets

conclusive.

(a) the analysis

regarding

actually

(1980) allowing

investment.

researches

the third phase of timber

Since Cabanayan's

annual

per peso

of Rebugio's

of a perpetual

sustained during

1980);

cut being

and depressed

not be considered

shortcomings

by Cabanayan

simultaneously

logging

system

and

with a definition

i of economic scheme

sustained

should

yield

be feasible

(Revilla,

within

1978),

the given

biological

conditions.

variations

of ÂŁLS as well as alternatives

inasmuch

as any harvesting

set of economic

Such an investigation

must

and

also consider

to the system.


24

Allowable

Annual

Cut Determination

The amount

of cut which would

time is determined calculates unit.

by the allowable

the maxlmumyearly

Only mature,

selectively

for subsequent

it is calculated

Though determining

(Revilla_

1977).

from forests Philippine

which

forests

inferior

growing

concepts,

and yield

was developed

management conditions

of future harvests,

unreal_stic

(Revilla,

predictions

have already

1975).

forest

on

specifically,

the formula

prediction

by using

better

1980).--6/ Thus_

confidence)

based

from second-g_owth

were of relatively

a model for all forest with

yield

future yield

(Rule,

which

are logged

from the forest;

a growth

Such model

over

cycles.

based on sustained

tends to overestimate

for a particular

The AAC is calculated yield

yield

cut (AAC) formula,

and defectivetrees

on two cutting

the AAC employs

for sustaining

annual

cut allowed

overmature,

from the forest.

considerations

allow

units

than most

the general

use of such

in the coLmtry,

Newer

since

informal

including

(and over-

gn?ow_h and yield

then and should

talks

those

been found to be

and more complete

been developed

h/This was gathered through other forest practitioners.

have

which

data obtained

qdality

of which

model

forests

leads to over-estimates most

used for

with

now be

foresters

and


25

used as basis Revilla, factors

for such

1977)o

These

which affect

conditions_ residual

years

formula

latter models

future

elapsed

allow

forest yield:

after

1976_ Bonita

fom the following quality

and

crucial

of site or growing

logging_

and initial

density

itself

is unrealistic

of

forests.

Moreover_

the AAC formula

assumes

that equal cuts should

cutting

cycles,

of certain

cutting

constraints

considerations

this formula

cycles_

be a subject

for future

research

with the economic.

forest management

unit

for the explicit 1977).

for an infinite

sustained which Again_

in that

from forests

(Revilla_

to allow

and economic

for each forest management

Economic

be obtained

and, it does not allow

economic

need to revise

would

incorporate

(the license)

recognition

number

concepts.

this could

for two

Thus,

yield

it

the urgent of

This should the h_ological

be operationalized

as well as for national

considerations.

Aspects

Resource

overexploitation

(i) common p_operty rates_

(e.g._ Canonizado,

and

aspects

(3) imperfect

may result

of the resource_

pricing

of inputs

from the following: (2) use of high and outputs.

discount


96

1.

Common

Property

Common

Considerations

property

theory

of resource

the case where there is virtually the resource. of certain pricing

Gordon

(1954),

fish species,

of the natural

production. from fishing.

resource

itself,

in high economic

Overcrowding

eventually

high unemployment

the industry

(Clark,

specifically,

and charges

among

could

logging/log fly-by-night ineffective

p_lic

among

to

realized

fishermen_

and

(resulting

discourage/disable

this may have

export activities, loggers.

and shifting

for their

When taken together

exit from

business

to the condition with the buoyant

and the e_nsequent

as factors

which

(Segura

log export market high profits proliferation

cultivation,

landlessness,

for the conservation/preservation

may be counted

Low taxes

of underpricing

led to the extremely

increasing

for some forest

cultivators.

harvesting

In the case of shifting

forest protection_

lack of orientation

initially

be said to be true also

the loggers

paid by loggers

in the sixties_

leads to non-

the many fishermen

rates would

et al, 1977)_ may be equivalent stumpage.

follows

to

prcblem

is also an input

rents

to

1973).

Such a phenomena users,

thc overfishing

which

refers

(or open access)

out that such aspect

even when the rent is dissipated in losses)

free access

in analyzing

points

This results

overexploitation

in of

virtually

and a general of anythin_

lead to forest mis-use.


27

2.

Use of High Discount

Even when easy_ resource high-powered

RaZes

entry to a renewable

over-exploitation

ships

resource-based

was still observed

(a capital-intensive

results

fPom the use of high discount

(Clark_

1973_ Ciriacy-Wantrup,

the latter capital

are faced with

intensive

1963_

capital

technology

industry). factors

Pearce

resulted

have actually about receipts

been compounded f_om future

of the relatively needed

overcutting

return

for forest regenerat_on)_ thereby

necessitating

investments

in logging

One may argue then that on the part may have

rates

(vis-a-vis

as well.

may

(a) uncertainty

_orest

because

the long time

of small-sized high

capital

(Segura, et al, 1977).

constraints

that they

led them to the _'economical!y sound"

the forest

may have

to the lack of conservation

the economic

in

and licensees

factors:

(b) _anting

in a forest

loggers which

the need to recover

in addition

of the loggers,

actually

overcut_ing

equipment

and

When

to capital.

of second-growth

for licenses

users

1975).

intensive

by the following

short tenure

concessions

Such a phenomenon

by concessionnalres

harvests

with

and yet need to use

In fact, the use of high discount

in forest

in fishing

and Rose,

This may also be true for the capital the country.

is not

by resource

constraints

they maximize

industry

decision

ethic faced of


28

In the case of the shifting at subsistence present

levels

needs are most

forest occupancy

provided

during which

measures

forest occupancy

renewed,

high preference

likely reinforced

permits,

soil conservation date,

of living,

cultivators,

ample proof

rates

of whom

are

for meeting

by the short-term they are supposed

or face ejection

permits

majority

(one-year)

to conduct

from the ferests.

are granted

for two years

of developing

the occupied

To

and can be upland

area

is present

High preference only for the private planners

rates users

of low-income_

of forests;

on natural

resource

problems

management

conservation for instance, more

rate needs

projects

though

imply however_

and activities째

would put more pressure would he to lower

economic

on resource _

for

countries

who

of the populace째

of resource

exploit-

been expressed

problems.

to be imposed

and higher

may be true not

were felt had concern

growth

of

rates,

exploitation.

lowering

resource

(1972) and Myers

lowering

for resource

that a general

to encourage

Scott

point out that a general

investments

needs

only when symptoms

This does not necessarily of the interest

developed

on the i,_ediate

countries,

ation and environmental

consumption

they may also be true

capital-poor)less

have had to focus attention In fact, for most

for present

i would which

(1977)

induce

in turn

What may be done,

conservation

projects,

such


29

as what

is being

done now to encourage

investment

in tree plantations

in the Philippines.

Whether

such lowering

needs to be investigated expected upland

f_omt_ee

farmers.

such incentive

of interest

along

plantations, Studies

rates

W_th rates

of return

undertaken

by businessmen

need to be conducted

and the nature

is sufficient

of capital

still

that could be and/or

on the availment

market

available

small of

to tree

growers째

3.

Pricing

of Inputs

and Outputs

Among the benefits recreation_

provision

of forest production

of potential

The first three are generally non-mutually in monetary attached

exclusive. terms.

to forests

long-run

Thus,

their

Consequently,

have been

and often destructive

difficult

supply,

benefits

valuation

the value

to estimate.

forest

value.

forest

balance_

and wood products. whose

use are mostly

is difficult

to quantify

that has been generally

has been that of standing

in an underIDrieing of the total to wasteful

water

are ecological

timber

only,

resulting

This has partly

use_ whose

costs

led

to society


3O

Moreovem,

even the value

of standing

itself,

has been underestimated.

As stated

forests

are publicly

been awarded

to private

Such individuals forest

charges,

export

taxes.

internal

and their

individuals

pay the following license

generation,

real

property

license

None of these resemble

producing Although

such a system

to production being

the public

the late fifties

to the d_fficultles was made by Serna stumpage

appraisal

concessions.

excise

of attributing

(Chinte,

involved

were

taxes

to logging: sales

taxes

imposed

products_

costs

and risks value

which

to operate land

(Gerard,

Serna's

the costa associated

study, with

1917).

to earn its due from in the Philippines

in its calculation.

operating

a

with

as an input

it has not been adopted

in fact,

888),

for

associated

to stumpage

was advocated

in connection

(P.D_

goods.

allows

partly

However_

with

the valuation

involved forest

a detailed concession.

in due

an attempt

(1974) to look into the operationalization system

and

for

on produced

appraisal_

for government

1957)_

taxes,

has

system.

for the use of government

stumpage

forest manager

purposes

fees for the permit

for profit

and as a basis

Philippine

the licensing

charges

of value of the final

it_ and allowance

earlier_

fees in relation

and the rest as forms of the usual

the computation

through

forest

taxes

(or stumpage)

use for logging

fees, real property

Of these taxes,

revenue

a business,

owned

timber

of the of timber

examination

of


3i

More recently, indicated

favoring

way of valuing implementing considered

standing

appraisal (N_C,

of decision-makers

system as a more

1980).

But,

with bidding portion

been awarded

as a basis

of Philippine

during

the interim

period

efficient

(during which

in

(a) i% has been for awarding timber-producing

as concesslons/licenses.

to apply it for future new concessions,

charges

have

legal problems

out due to the fact that:

(b) the major

have already

was then made forest

timber

to go hand-in-hand and,

a larger number

the stumpaze

it were pointed

concessions_ forests

though,

A suggestion

and to adjust licem_es

are

expiring).

The more must be made the public

examined

thing

to pay a fair price

allows

the economic conducted.

important

the former

constraints

to earn returns

within

for possible

which

incorporation

tool for regulating

standing

timber

wasteful

use of %he_esour_

forest charges_

should

not be priced

at _he same time that

as an entrepreneur,

(Nautiyal_

into forest

so low that

under

is

1977) must

taxation

cuts from forests.

be

determinatlon_ For instance,

it encourages

the move to integrate

collectlons

is a step in the right

the government

concessionaires

logging/manufacturing

Certainly_

fees, and other

adjustments,

allow_ng

to the public_

In fact, the user cost concept

and as a possible

upward

to note is that forest

into one fee_ a_d with direction,

to earn due revenue

in terms

from the forest.

of


32

For future t6 the various be made.

studies

forms of taxation

For instance,

that of a severance drastically terms

affect

(Grego?y_

collected

regardless

periodically

_roperty periods compared

the decision

taxes

of whether Returns

that clamor

form and value

charges

harvests

for the amendment

effects

which

at least_

are made

harvests

production

approximate

1972).

of current

(Arafiez and Baggayan,

to

taxes which

are expected

to be

yet, real The longer time

this tax 5urdensome, It is perhaps_

real property 1978).

a_e

or not, the opposite

annually.

make

should

in theoretical

annually)_

to be collected

tax (Gregory,

due attention

should not be expected

to harvest_

from forest

in forestry

has been expressed

corresponding

(i.e., not necessarily

say, to a y_eld

system,

In the case of real property

are supposed

involved

taxation

and their

in its current

tax, forest

1972).

case may be t-rue. earned

on the f_est

taxes

when

no wonder for timber

then,


33

PART

II

THE FOREST RENEWAL

Government problems

during

effort

to restore

forest

the last two decades

(i) inadequate

funds

better

management

reforestation

(4) absence

tractors_

needed

for

projects;

have direct

research bearing

work

and

on

activities_

apparatus

its reforestation

(5) kaingineros

equipment

to undertake

which

of audio-visual

enhance

1964):

and other

personnel

duties

met the following

wages_

of reforestation

(3) lack of technical other technical

vegetation

(Viado,

for labor

(2) lack of vehicles_

PROBLEM

/

(6) reforestation

other

the reforestation

machines

to

work_

illegal

of forest

and printing

areas

occupants_

outside

and,

the jurisdiction

of

administration.

i

While such problems increased aspects the more general

budget

of forest

have

for reforestation renewal,

basic problem is

r_ins

been tackled

through

projects,

and increased

undertaking.

research

extension

of lack of planning

a major

administrative

reform_

on technical

work in forestry_

in reforestation

Such a problem

work

is widely

in


34

recognized

among experts

indiscriminate

tree planting

effort in the country. g_oup of experts forest renewal hardwood

have focused

on.

through

Similar

economic

factors

techniques)

lack of interest

among

of timber

a caveat

Forestry

(1) tax incentives, timber_

in

that

by the softwood,

reforestation

which

efforts

led to destructive over-cutting,

seem to

users

These

caused

in seriously

grapple

recommendations Congress

and benefits

with such

gain treatment from income

economic

during the 1978

(Ara_ez and Baggayan,

such as capital

rates_

of costs

were made

1978):

of growing

taxes

from any and all sources

tree planting; '_abolition

of the real

the

conducting

are: high time nreferenee

to partly

derived

forest

and slash-and-

may be said to have partly

I00 per cent exemption

_tall investment

sector

Enterprise

logging,

Perhaps

the follo@ing

by the same

was expressed

be replaced

current

made

of the private

in forest use; and misvaluation

production.

First Philippine

involvement

_forest

activities.

tenure

constraints,

the recommendations

Private

(such as illegal

shortlived

reforestation

on which

Renewal

renewal

has been said to characterize

in addition,

burn cultivation

forest

issues

should not entirely

species,

activities

in particular,

Among

efforts;

species

(NRMC, 1980)_

were the direct

fast-growing

Forest

on forestry

property

of put into

tax on


35

timber

growing

fees, harvest

(2) revision forest

fees,

industry

more

on tenure

viable,

allocations_

in world timber

areas

products

need for products

need

Research

existing

plantations,

such as those

studies

protective

possible

wood-based

wood

summarized

financial

of the Paper

(PICOP)

who were financed

of the Philippines

(DBP).

PICOP

farms.

and the

both by local and should

take

of forest

below.

average

an average

in

supply bottlenecks

energy)_

species_

of the Philippines

smaller-sized

forest cover

on the establishment

(1978) reports

earned

liberal

in the light of The

on such recommendations

of 59 per cent for tree farmers

DBP assistance

the

in The processing

to be studied

(including

into account

Mindajao

for

would make

such as: more

in the country;

of fast-growing

consumers.

which

facilitation

The need to restore

denuded

to allow

and the like.

Such recommendations

foreign

and the like_

for an environment

of dncuments_

critically

of application

land use for more than fifty years&

log export

the following:

and abolition

of the policy

(3) providing wood

land;

tree farmers return

rates

Industries

of return Corporation

by the Development who did not avail

of 53 per cent while

Bank of

womking

on


36

The tree farming of inputs farmers,

and technical as

scheme knowhow

participation

non-participating

in the venture

the following

farmers

reasons

to degree

of family manpower not wanting

to wait

were

the provision tree

market

(with PICOP

Mindajao's

show that mwo main reasons

and the presence

according

of a ready

for the tree farms'produce.

on the PICOP tree farmers

investment

involves

to the participating

well as the assurance

as the buyer)

farmer

of PICOP

also

for continued

are high returns

of an assured

market.

interviewed

study

on family

Among

in the same study,

cited for non-participation

of importance):

lack of suitable

_ lack of time to attend

those

to tree

for too long a time before

(arranged land_

lack

farming_

trees

could

and,

be

harvested.

Indeed, consider

the availability

when reforestation

of land is an important

work is to be done by

In the PICOP case the participating

farmers

were

factor

forest

to

dwellers.

land owners

themselves.

Some views informally scheme

expressed

also point out that PICOP

structure concession.

anymore, Thus,

its operations its forest

in as much the PICOP

to include

concession;

on the PICOP

tree farming

did not have to invest

as it already scheme

tree farmers

had one in its present

entailed located

the tree farmer_'

in infra-

only the expansion in the periphery

pulptimber

augmented

of

of

PICOP's


37

own pulptimber

supply

from the latter's

plantations

within

the

concession.

In a separate for an already establishing potential

existing

of tree

Gendrano

provide

More complete needs

aspects:

for marketing%

of denuded

for timber

vicinity

products

about costly affecting

transport

nut ability

in the international Sanvictores_ renewal

cummarketing

investiKation

to process market

1977)_

areas

should

of tree farms

of creatinK

would meet

1978).

which would

Component.

in Mindanao

include

and infrastructure While

which

Development

the problem needs

aspect

denuded

processing

complaint

a must.

Future

must

sellers

important

1968;

for forest

renewal

where

on the less bulky

be competitive

Foundation,

is indeed

of forest

as seriously

would

of planning

a log market

areas

and the immediate

in the country

This may be more focus

be relevant

of the efficient

wood products

and processing

into the possibility

ation projects

upland

services

(Economic

into the marketinK

(Clawson_

would

With the much repeated

and freight

1975_ PDCP,

a

of what to

which

majority

are found

Manila.

indications

studies

and, the processsing

of Metropolitan

_irm of

(197_) calculated

only

the establishment

are found in Luzon and the Visayas, plants

into the feasibility

of 27 per cent.

however_

famms.

the following

looked

pulp and paper manufacturing

rate of return

to the refomeststion

needs

Gendrano

its own tree farm.

Such studies, expect

study,

look

and buyers

for reforest-

wood-producing


38

species.

Government the last decade. ment

tores_

to shoulder

of denuded

reforestation

land

work

(Monsalud_

about

five million

especially

hea_y

in

the govern-

to reforest

1977)_

entail

whether

only

because

financing

(Sanvic-

1979).

of funds for various

needs to be explored. restation

work

Monsalud's

supplemented

one to consider.

It was

additional

charges

forest

A eoncomittant impacts

of forestry

The most

that funds

study

activities

_ (1973_ by GutierrezAon fh_

surrounding

its positive

the concession

on the other hand_

PICOP tree farming to evaluate economic

project

focused

of return

and shadow prices

and licensees.

Paper

the areas

effects

the

sector.

of a forestry

Industries where

Corpo-

PICOP

could

on tthe communities

on the direct

from the farmers'

of 23 per cent, after

Mindajao's

(1978)

beneficiaries

viewpoint.

from the public's

for labor were made.

to determine

impacts

were also identified.

costs and benefits

rate

Here_

through

by the private

on the community

BFD refo-

would be

be generated

be that on trying

of the Philippines(PICOP). increase

agency

on the concessionnaires

development

strategies

of having

by a quasi-government

suggested

was conducted

substantially

reforestation

(1977) proposal

study Would

comprehensive

concession

study,

has accelerated

the exDenses

in such areas

The generation

ration

work

And_ there are doubts

can afford

hectares

reforestation

His attempt

viewpoint

allowances

of The

yielded for loans

an


39 UPland

Development

and the Shifting

The problem

of shifting

more acute with

increasing

rates.

Whereas

there

problem

(Serna,

1972),

strategies

approach_

landlessness

recognition

In fact, the following into more

forest

approach_

Problem

is expected

to become

and high population on the extent

has been

efforts

farmers communal

appropriate

exhibited.

on developing

are being

growth

of the kaingin

of the need to develop

occupants

government

productive

the family

cultivalion

is no agreement

for managing

_ccupants

Cultivation

forest

tried: resettlement

tree farming;

and other

variations.

Resettlement

entails

the transferring

of the shifting

tors to areas more suitable

for agricultural

production.

resettlement,

however_

study of kaingineros' level of knowledge attitude

towards

for the development as income-generating public

attitude

toward

resettlement,

of the beneficiaries

being resettled.

for a resettlement

vacant

have not shown much success.

to be viable,

of infrastructure activities.

Attempts

Reyes found

(1977)_

cnuld not guarantee

capital

and social

Moreover_

lands for resettlement

outlays

areas

need

services,

the problem

out that to undertaken as well

of finding

need to be tackled

balay_

Bukidnon

assigns

of forest occupancy

lots to families

in a

a favorable

(Beloso_

1970).

The family approach

at

that a high

It has also been pointed high

cultiva-

management

for reforestation.

at Malay-


t0

Lutercropping feasible, cultural

with

food crops

i.e., trees have grown crops to survive.

Trees grown,

of seedlings

communal

The farmers

nursery.

,t_

_ngya"

th_ "_laybal_7

system

They basically

on.

entails

the

own backyards

tree seedlings

in three

in two years'

ÂŁerestTy

the concept

work, while

agricultural

crops for their

Villages

of h_ring

or in a to five hectare

time.

and protection

_.ft_r the er_ of the two-year

needs.

follow

1978).

families

for

them to grow

The governm_nt

of established

contract

schemes

(Polliseo,

kalnginero

at the same time allowing i_medlate

To

area to work

_n_ P._ntabangan reforestation

reforestation

_vc_ tho m_intcnance

are then paid according

in their

of the B_ese

follow

longer

do not enable egrl-

to another

lots and are paid via six _nstallments

Both

it ",'s no

rant_h,_n_rn scheme

by families

They plant

until

to sizes which

and are then Transferred

On The other hand, growing

is allowed

takes

plantations

with the far_ers

(Racgayan_

1977).

WheTher

such an approach

work Is a permanent

solution

To be _nvestlgaTed low, The shlfT_ng crops

(B_nua,

upon.

have been suspected

people

to the forest

It is possible

cultivators

1971).

of hlr_ng

would

problem

remains

that _f compensation

is too

prefer

And, in some cases,

to do reforestation

denudation

to grow agrlcuiTural the kai_g_neros

Themselves

_o be the same ones who set fire to the areas


where reforestation

work was done.

lack of alternative

means

they

conducted

cultivators Angeles,

would be hired

in reforestation •renewal

again

fomest

occupants

The need to develop

various

recognized,

sociological

(1977; Rebugi_

a total

1969).

Occupancy

Management

as deflned

in several

the non-kalngineros,

the strategy

Program ways

to kaingin

from

(e.g. _ Duldulao

"agro-forestation" being

adopted

(19_9_ points

and the landless

(I) " they are in the best position

has

agro-forestation, undertaklng

_ut that priority farmers

,

in the Forest

While

7__/ may also be a, business

they could use their own labor

management

gained

cultivators

of the government.

Duldulao

be given to the kaingineros reasons:

on shifting

the same

1964).

of insights

In fact the term

been used also %o describe

in as much "as forest

also runs along

approach

los

also be considered

(Sanvictores,

as a result

studies

the area where

the area.(Segura-de

should

sector

concessionnaires

to the

mean that the shifting

to reforest

work by the pTivate

of hlrlng

is now widely

work would

This is one caveat which

by %he fores%

s%Tategy

of livelihood.; burning

reforestation

1980)o

This may be attributed

for

shunld

for the following

to develop

lands

since

in the process _ only a small amount

summary of the diff_ent meanings of agro-forestation may be found in Segura-de los Angeles (1979).

of


q2

financial pPogTam

assistance

succeed

(2) kainEineros %0 be driven potential

may be required

if these

are the _oups

have already

for developln_

the development

shifting

cultivators

The more

cultivators'

problem

should

be complementary:

effects.

projects,

fop instance,

the private

to note,

points

area in the Northern

erring

loggers'

eros, and land_Tabbers,ame of the pilot aEroforestry

will

to be seen; services

strategy be mope

in

That

into pilot

out the land-use

encroachment

is, whatever

will have sustaina_o-foPestation

problems

as a combination by pasture

forces which project

expenslve.

in the future

none of these

Philippines

of restorlng

is that the shifting

be conducted

investigation

upland

1980).

sector's

howevem,

otherwise,

problem,

of

more funds.

activities

A recent

stability.

and social

can no longer be _gnomed.

development

the

the management

remains

the latter may still

think

upland

able

through

inf-castructure

however,

important

Indeed,

seem to lie in the abundance

of the uplands

with

and,

even if they are

fiEht.

is less costly still

When compared renewal,

the land_

and %he need for political

these areas may also entail

to make the

who get the leases_

likely

the uplands

the need fop establ_shin_

forest

occupied

out, they will most

of labor in these areas, Whethem

from government

threaten

_n the area

leasees

in an of the and kalngin-

the initial

(Segura-de

gains

los AnEeles,


43

Most studies

conducted

their basle chamacterlst_cs; having

been conducted

on The socle-economic

profiling

cropplnE

systems,

labor utillzation, sustainable

information

such research

cropping

for upland

of implementation

The only on-Eoln_

study on The institutional

be tapped

is that beln_ conducted

at the U.P. at Los Ba_os

mlnor_ties

_mportant

_ssue

(Saj_se_

working

framework

mobillzatlon_

I/See del Castillo

credit

support;

in o_der

for upland

that

the followlng (b) external

of upland

Hydroecology

1980).

with

them within

approach

strategies: and internal

fop instance, the studies summarized (Ig79), and Ganapin (1979).

the cultural

norms acceptable

work by Palma-Gil

for a Total

into.

development?

framework

is that of dealing

An _mporTant

This study highlights resource

for various

to be looked

by the Upland

and the need for developing

to their traditions. an initial

problem-_olvlng.

are evolved.(Llapitan_

also needs

institutions

Another

these

on the farmers,

mix and cycles_

How will existinE

FeoEram

While

sustainable

development

farminE,

' 1972).

The problem

development

_/

towards

density

on

have conceni-eated

and the llke need to be answered

strategles

1979; Caga_ang

basis_

focus

on uDland

of the far,nets.

population

optimum

far_ems

_s, research

Benchmark

there _s a need to d_rect on: maximum

that

on a case study

are useful for pmovld_nE

Questions

on the upland

(1976) pmovides

Towards

development.

(a) a_T_culTural market

development_

by LibPero

(1977),


_4

and (c) the development

of supportive

infrastructure

and institution

building.

With respect in Part

I above),

to shifting towards

the granting

cultivators

developing

as provided ment

to the land tenure

may not be adequate he has undePtaken

upland

five year lease allowed abd/oP agPo-forest

The recent

lalmching

farms

CTF is the formation

distantly

efforts

located

that

ape supposed

against

the twenty-

tree plantations

%Tee farm

the two-year

of the Cu_m_mal

improvement

to a group

entail more

the period

to prove

which

industrial

No. 4, 1980).

is an improve-

by law_

When examined

and ten-hectare

incentive

of such a pemmit,

cultivator

activities

for 100-hectare

Here, an area of at least

into agro-forest

provided

permit

lease a_eements forest o_cupancy

short-term.

a marked

year-lease

earlier

mentioned

occupancy

No. 9, Series of 1980_

of trees.

Order

forest

the _anting

dev_lopment

farms,

(MNR Admin_siTative per_,it is really

permits

(briefly

be an insufficient

time for the shifting

the planting

represents

While

for in BFD circular

over the one-year

to include

of a two-year

may yet still

the land.

problem

for forest

Tree Farming occupancy

Program

management.

ten hectares

is awarded

as a twenty-five

(e.g., baranqay)

of farmers

for development

(BFD, 1980).

of strong at human

shifting

A necessary

condition

farmers _'organizations,

resource

cultivators.

development

to a

which

activities,

would for the


45

Watershed

Development

Watershed _he

development

realization

management been

of water

of

forest

hampered

biological, on-going the

by and

inventory

Umali,

of

factors

studies

NIA

& Madecor,

with

bottlenecks.

protection

has,

information

development (UPLB-UHP,

The however,

on the

of watershed

1979)

reduced

benefits

grazing; damages

to

opportunities.

these

not

presence the Dam,

attributed

of other and

the

of

physical,

renewal. have

1978,

Thus,

focused

1977,

the

management

forest

and Magat

include

employment were

on watershed

for Pantabangan

production;

ation;

studies

the non-timber

the

of

concern

on

1979;

1977).

quantify

the

factors

for watershed

of such

a main

- demand

technical

climatic

Feasibility

crop

supply

been

for watershed

lack

research

has

renewal.

watersheds

following

primary

reduced

roads

resettlements;

Other

benefits

solely

to the

comTlementary

development

were project

the Upper

to example,

& ECI,

sediment-

and_

improved

mentioned because to wit:

Pampanga

but, of

the

building

River

Project.

Watershed necessitate

the

development building

1978;

benefits:

reservoir

projects,

of

For

(NIA

forestry; and

attsmpt

for

the

protection

of reservoirs

of dams

and

consequent

displacement


46

of communities.

Thus,

project

and

been and

benefits

raised

along

bangan

sumption

for such

Moreover, community (UGAT,

more

due

to

study

resettled

1975):

facilities;

and

inundation, of

by Floro

for

the old

(1980)

on the

families,

and

& UPIEP,

health

planning

which Panta-

highlighted

production/con-

several

years

after

resettled.

to

focus

have

been

issue

projects

on human pointed

resource out

of whether

(Ymzon,

such

is warranted

develop-

has

1980).

similar been

raised

1979).

important

upland

areas

is the

consistency

and

(NIA

have

activities.

the residents

and

basic

complementarity

areas.

the

need

displacing

Another the

of

to the

of displaced

of resettlement

projects

the

to

recent

displaced

the

and

of

deistribution_

development

lo_t

NIA

identification

attendant

following

water,

imparts

Indeed_ ment

the

by

A more

been

their

conditions

property

activities

have

the

out

made

town.

the negative

they

of

were

and

problems

of housing,

undervaluation payments

on

point

inadequacy

on the

of watershed

studies

communities

costs,

with

implementation

Follow-up

questions

evaluate

of various

(Segura-de

Saplaco

aspect

of

(1979)

policies

of watershed development

los Angeles, policies thus, relevant

which points

1980)o affect out

the

to watershed

development projects

in

A broader projects need

is

issue in such

to catalogue

development.


47 PART MULTIPLE

While follow tion

is still

putting

at

it in

technical numerous

And important

in

forest

in

land

investigate watershed

analyzing

production

to logging

amounted

timber food

due

down

(PD

to

forest

uses,

production.

was

such

down

high

lack

and

Bonita,

forestry may

be

Serna

study's

down

wilderness,

would involved

lands

to

for

(LOI

917),

calculations

commercial

forests revenue,

earnings.

of otherwise

priorities

1978).

(1980)

of government

exchange

of

of the

areas

of

in

the

forest

The

year

closing

as for

by

wilderness

per

of the

to

that

made

of certain

of foreign such

due

trade-offs

closing

to _719M

difficulties

(Revilla

(PD 472).

the

multiple-use

multiple-use

1559),

areas

that,

indications

the

Although

possibilities

forests

attempt

B annually,

however, are

An

closing

lost

areas

the

operationaliza-

arise

on production

protection

$430.28

terms

forests

latter's

country,

operationalizing

of revenue

added,

concrete

use.

the

the

stage.

in the

of using

yet,

be

and

initial

information

of Philippine

concept,

exist

more

ways

food

use

its

already

USE FORESTRY

management

the multiple

districts

and

current

III

attached watershed,

Serna loggable to nonand


48

A workable

model

has

already

been

for

certain

forest

operationalized development model

other

ences

criteria

actual

are

land

(3)

s model

following and

uses

forest

not

agricultural

was

in

following

terms

of

expressed

terms,

goals,

according

been

minimized

efficiency.

suggested

forest

than

to be

lands.(Revilla,

focus

on

the

the use

in

in most

rather

of

advantages

(1) it allows

be

are being

sub-sections

timber.

uses

the

models:

measure

of

programming

and

the implementors,

from

has

A goal

the

products,

monetary

what

a single

multiple

The forest

of

such

examining

and,

into

for reoreation,

be prioritized

deviations

optimization reasons_

may

looking

and

resources

has

need

decision-maker,

users;

function

model

as

implemented

impacts.

which

(such

alternatives

formulated

Makiling.

non-timber

use

be

was

for

forest

allocation

criteria,

of the

for Mt.

programming

of measure

(2) such

(1980)

economic

already

a model

of alternative

resource

of various units

forage,

multiple

may

Such

to allocate

and

A goal

and

units.

Evaluation

environmental

over

developed,

alternatives

timber,

crope.

examining

by Balangue

was used

water,

for

the

same

models);

to

the

and/or

preferthe

in the

objective

the usual For

these

employed

for

1977)o

other

uses

of


49

Wildli.fe,. Recreation

Virtually life

(Magno, focus the

on

the

vation

and

With economic

for

On

national

thus,

it

to forest have

extended

area

their

and

and length

fnasmuch

as

Control

of

and

of

durations

effects

other

recreation,

on

conser-

activities for

hand, may

that

still

tourism

in

more

appear less

of

which

developed as a tool

on forest tourism

exist.

inclined

weak,

development

pressure

effects

no

formulation

getting

leisure

put

the

virtually

on policy

Filipino's

of demand

is important

burning,

production째

bearing

average

development

on rangelands

of benefits.

recreation

the

of

and

productivity,

tenure

terms

diffusion

is characteristic countries.

in

of the

forest

to be

as

on wild-

important

research

grazing,

to food

such

which

to be

Basic

need

important

respect

studies

prospect

towards

the

recognized

of

exist

for recreation,

of rangeland

These

assessed

studiew

use

1979).

effects

activities,

to be

are

maximization

are

rangeland need

they

interval.

rangelands

forest

Alvarez,

conservation

_

policy-oriented

issues,

though

1979;

cutting

The

no

management

rangelands,

and Rangeland

recreation;

which

is


5o

forest-based

needs

Forest development evaluated

renewal of

in

these

terms

where

they

need,

micro-type

specific

to be

are

evaluated.

efforts other

and

laws

geared

in

and

be

need

to the

this

would

towards

products

contribution

Thus,

of studies

policies

are

non-timber

of their

located°

which

their

impact

to be

communities

particular

important

the

research

for assessing on

socio-economi_

goals.

Minori

Forest

Products • UL

Forest important

renewal

because

of

source

development

source

has

(eogo,

Estudillo,

furniture ing

on

been

forest

the prospects

thrusts.

The

of use

explored

in various

et.

1970)o

industries,

problems

for minor

(PCARR,

al._

researchers

products

has

countryside of

In have

and

fuelwood

feasibility the

oa_e

focused

1978): 8-/ unreliability

8-/The PCARR study actually Summarizes various problems of the furniture-making

of

become

as

energy

energy

studies of the

wooden

on

follow-

the

the

supply

several industry.

of

researches


51

raw

materials,

ment

of managerial

industry the

has

In on the Whereas the

it may renewal the

the

use the

yet

firms

being need

and

of the

to

one

would

for using

able

kiln

along

younger if

be done

which

would

drying,

for

shifting

dendro

be

energy-using

cultivators

in

along

forest

more

of savings important

fully

tobacco their

basic

researches

policy-oriented on

the

studies

following:

firms;

establishing

by

for cooking,

bakeries,

While

focus

caused

amounts

more

lin 9_/

would

to be gathered째

trees

solved

to develop

this

information

is partly

in huge

This

basic

needs

dendro-energyo

conducted

support

result

bill.

as lumber be

which,

problems,

bottlenecks째

more

problem

and

policy-oriented

of supply

and

develop-

development

of these

for households

import

would

the

one

the

furniture-making

more

dendro-energy_

be

and

ceuntryside

account

.smaller-sized

(such

to

take

needs,

the

exchange,

denudation

strategies, energy

for

basic

of

forest

prove

government ment

to

fuelwood

of

technology

also

case

of

processing)

are

foreign

the more

cutting

when

of

credit

Since

potential

be undertaken

particularly

and

skills째

vast

generation

should

in

marketing_

involveenergy

farms,

like.

uch the Phil_ppin_

Audies Forest

_re summarized in the _roceedings Research Society (1977)o

of


52 PART ECONOMICS

Timber

products

for consi_uct_on, products

IV

OF WOOD PROCESSING

are in vamled

infrastructure

forms,

support,

among which

are those

fumniture-making,

paper

and others.

Focus

on wood

raw logs initially (I) expectation of income

arose

•

of higher

_s that of reduction

there ape already

gleaned

fTom the discussion

Philippine to the weak

effective

export market

(Seguma,

demand,

using activities, for the more

•

additions

of forest

sufficient

TCmber

products

demand

from taxes; output

(2) generation

(Sitar,

1968).

to the pros of log (Cortes,

on such a policy

lO 1

1976). _-will be

Prdiuc%_

had been

largely

export oriented

of the domestic market

e_tal, 1977).

is therefore

highly

such as construction,

developed

considerations:

destruction

studies

to exporting

below.

for Phil_ppine

timber

revenue

and (3) additional

Whether

a derived

government

one of the important

Suppl_y and Demand

as an alternative

out of the following

and employment;

More recently, processing

export processing,

Demand

which

and highly bouyan%

for wood products

dependent

due

being

on the final wood-

in turn is more v/brant

counITies.

0/Cortes' article is also a good reference for the history of the log export ban and government measures taken to encourage domestic wood processing industries.


53

Most analyses therefore

been

of the market

of processed

in reruns of determining

in the international

market

1974; and Valdepefias, 1969).

demand

for Philippine

and veneer,

for purposes

demand

functions

twenty

years,

demand:

countries

which were

material

and price

(plywood);

estimated

elastic

than

(2) that demand

is less income and price

using

for necessary

elastic

conditions

total

1974;

fo_ign

the use of per capita

such demand

economic

has

1977; Nguyen,

estimated

and export prices

important

(i) that demand

and demand

Seguma,

through

of projecting

validated

is less income

1976_ Segura

wood products

income of the importing

supply

(Ricasio,

Sibal,

wood products

time

of pulpwood,

lumbem

in the future째

The

series data for

concepts

regarding

timber

construction

materials

(lumber)

demand for

'luxury' construction

for an intemmed_ate

than demand

input

for its final

(veneer)

product

(plywood).

Ricasio's wood products prices

study estimated in terms

in partlcular

focused

on export

wood and veneer, model

of national

wood

supply through

and demand

market,

system

some government

price

activities,

Sibal's

for Philippine

competitiveness

such as, export taxes,

for the same Philippine

housing

countries.

a simultaneous

Philippine

demand

income,

importing

could be used to examine

aid in increasing

foreign

analysis

logs, lumber,

ply-

of equations.

Such a

controls

could

which

in the foreign

ceilings,

and

and the like.

wood


54

Nguyen's logs_ lumber, export

study focused

on the physical

production

functions

plywood-veneer,

and pulp/paper

products.

In addition,

supply functions

the foresi-ry sector

and models

for employment

tlmbem

a wood consumption products

to provide

by vamious

rough estimates

index

matemial

had been weak because

local

domestic

market.

national

wood products'

Filipino. industry

to the pricing

Domestic

A study

wood prices

prices,

is in order

could serve the needs

Competitiveness

Philippine competitiveness

of Philippine

wood products

It points

out,

as a construction and lack of support

And yet_ housing intervention

to

This was used

demand.

for wood

attempted

the need for

activities.

of low incomes

(pre-1977).

with respect

study

for approximating

demand

Some form of government

especially

Segura's

for future local

that effective

for low cost housing

only

constPuction

however,

acute.

in

were also developed.

In the case of local demand, develop

and investment

for

needs

had become

may be appropriate

of wood products had generally

and ame too high here for the tools

here

sold in the

followed

inter-

for the avemage by which

the wood

of the local populace.

Wo0d

Exports

exports have been experiencing

in the international

wood market

decreasing

for the following


_5

_aasons:

(1)

at

Although

the start of the processing

some deficiencies these were positive

effects

of exchange

because

rates

and increasing

machlneries_ uneconomic

of the

treatment

in the U.S. market,

Such deficiencies

of work;

rectified

be observed,

of the then preferential

wood products

efficient

could already

not immediately

Yhilippine

1964).

in t_ade

industry

include:

need

plant

demand

for

effects

(BPussier,

the need for

to improve

organization

sizes& and wasteful

processing

techniques. (2)

For those during

small

the early

activity

sized

concessions

sixties,

(ValdepeZas,

logging

1969);

Thus,

which

was a more

plants

government

later, was accomplished

of following of wood

near concessions,

the law, rather

processing.

such plants

were not

wise, among

others.

profitable

the setting

wood processing much

proliferated

as required

by

only for purposes

than fop serious

It is easy to believe built

up of

consideration

then,

optimally,

that capacity-


i

k

._6

Even when deficiencies concessions utilization_

attempts

had already

and inefficiencies and improvements the country

competitiveness

been made to overcome

through

in wood processing

still

in the foreign

experienced market.

these and came up with the following Sanvictomes,

Villanueva, (i)

1975; Mendrano

1978; Tecson,

inputs

and wood waste

Several

analyses 1976;

studies

focused

(Sanvictores,

PDCP,

1977;

Gamboa,

due to:

of its

recovemy

logs, since

rates

Floro,

of imported

the high

in raw form.

Our wood

with the wood

exports

quality

exports of Taiwan

cannot

low

logs a_e exported then compete

for instance,

marketing

problems

tTansport

costs ;

disadvantageous

leading

effects

to high freight

of taxes.

since

logs imported

us.

(4)

Ig78;

of wood products;

in processing

the latter uses the higher quality

(3)

1970_

1979);

high prices

import content

on

cost of electricity.

low percentage quality

high

of vamlous

mor_ weakening

Umali and

costs

vis-a-vis

increasing (2)

et.al.,

1978_

high production

the consolidation

such

and

from


57"

The most comprehensive their exports development

was conducted

of the major

the Philippine

experience

study

conducted

by Floro

wood processing

industries

in import substitution

efforts.

the take-off

stage in log export processing_

ratios

linkages

Floro investigated

in labor.

Among the study's

(1)

that most

important

foreign

comparative

advantage

labor productivity

(2)

various

controls

its trading disadvantage

Floro also reiterated wood

imposed

partners

halted

backward

capital/labor

of comparative

advantage

are:

(in terms

of

for wage rates);

by the Philippines

worsen

of

have a real

in labor

adjusted

which

by analyzing

results

competitors

the

and export

framework_

in the light

and

in the light

the factors

via the input-output

and labor productivity

industries

(1978)_ who examined

substitution

and forward

on wood

the former's

and

comparative

in wood processing.

the marketing

problems

which

had plagued

the

industries.

Processed policies

wood products

have caused

problematic.

have high

such dependence

Umali and Gamboa

import

contents.

on imported

(1979) point

inputs

out that

And, certain even more

"tight monetary


58

policies

for deferred

to replace

obsolete

protection

of inputs

disincentives Tecson's

II/ capacities.--

and expand

and paper

Other

in inputs,

disincentives domestic

taxes

resource

cost,

the

covered

pointed

by

out were:

on inputs,

comparative

only

in the production

would

be an important

advantage

cost concept

competitiveness

when analyzing

log export ban,

indicate

Villanueva's

industry

explored

Tariff

among

establishments

of the pulp and paper

Philippine

third

ability

and minimum

among others.

In terms of domestic

resource

the industry's

has in fact, been ranked

(1979).

import restriction

imports '_affect

machinery

cited by pulp

survey

wage-control,

payment

in various

the effects

employment

that the Philippines of pulp.

of various

analyzing

and should be

policies

sectors,

has

The domestic

tool in further

wood products

in wood-using

(1978) analysis

on taxation,

and the like.12/

11-_/An important study on the development of labor-intensive techniques for the forestry sector is that being jointly undertaken by the Bureau of Forest Development, lnternat_onal Labor Organization_ and the Government of Finland (1977). 12-_/Studies conducted

under

the Industrial

Promotions

Policies

Project (1979) shed light on the external (non-forest) policies have significantly affected export processing industries.

which


59 Resource

Productivity

The to

use

increase

tries more the

have

of labor-intensive

waste been

utilization

key

issues

competitiveness potential

forest with

products

the

by

finding

the

on labor

exist

in

has,

however,

such which

as

of

hav_een

products.

improved

forest

Japan

the

United

country's

following

adoption

the along

forestry

in

capital

proposals of

trading were

these

Employment

and

are also

safety,

and Use

because rich

(American

of

therefore

techniques: Technology

of such the

areas,

Pacific

partners

on mechanization;

a

Labor

sector.

optimized

in

major

of guidelines

forestry

A major

which

conditions,

States

implementation

(1977).

techniques

not been

the

of A Forestry

through

Development

Government

working

the

formation

indus-

addition,

the International

technologies

the

In

in Philippine

the Philippine

encourage

(2)

with

and

The

use

labor-intensive

ecology

influence

need

to develop

emphasized

of Forest

Finland

with

techniques

products

market.

been

the

program.

consistent do

forest

development

has

undertaking

is that

foreign

the Bureau

and

the

the attempt

countryside

study

research

Organization

the

renewal

technologyand

in

in

industries

forest

conducted

joint

in

for

A recent was

Studies

Coast),

in

timber

made (I)

to the

Working (3)

Group;

investi-


6o

gation of

of incentives

information;

Basic scarce.

from

of

20

only

per

recent

studies

Momo

on waste

and

per

conducted

towards

training

of workers째

utilization

are

into up

cubic

was

on the

by Decena

wood with

waste a rate

meters

found optimal

(1975),

of

no

longer

of

timber

of utilization

timber째

The

to be higher. use

The

of wood

de la Cruz

utili-

more

wastes,

such

(1975),

and

(1980).

Decena waste

among

concluded of the

looked

various

that

whole

A similar

conclusion feasibility

for

the

production

focused

the

waste

was

reached

of

on the

feasibility

areas

and using

fired

power

plant.

such

processing

most

effective

studied,

of logging method

extraction

of

them

This

of gathering and

hauling

and

to run

is

investigamaterials Momo's

waste

a 6 _ megawatt out

economically

costs

who

as raw

wood

points

wood

profitability

plywood.

using

study

waste

Cruz,

wastes

veneer,

he

be processed.

de l_

logging

lumber,

to the

therefore by

of logging

of processing;

contributes

should

of using

allocation

channels

and

logged-over steam

optimal

alternative

system,

the

study

into

logging

ted

be

dissemination

came

100

processing focused

(4)

looked

forest

cent,

for

to labor-use;

efforts

(1972)

the

rate

those

(5)

research

zation

as

and,

Mendonez

removed

favorable

wastes having

that

from woodalthough

feasible,

the

still

needs

to

been

found

to


61

be

major

portions

The Lo_

Export

The following

of

investments

export

ban

objectives

(I) To

(b)

the

(a)

centrals

needs

the ban

were

foreign

exchange

higher

of

capacity;

integrated

wood

industry sized

industry

of wood

plants;

and

industry

areas;

from

the

our local

abroad

for wood

processing

in

anticipation

plants;

of industrial

tree

and,

forests

by

expected

earned

destructive

the

unit

plants

which

denudation

of

logging.

implementation

generation;

volume

competitiveness

and

eventual

employment

per

operating

destruction

from

to be:

more

program

establishment

alarming

cited

wood

of uneconomic

reforestation

of

plantations;

gains

out

investment

our

(4) Encourage

our

the

ventures;

(3) Accelerate

Curbthe

achieve

of the

establishment

capital

processing

costs

phasing

in strategic

in

of the

development

of

(c)

to

1976):

the

development

(2) Draw

formulated

(Cortes,

complexes;

lower

was

rationalize

through

The

processing.

Ban

log

(5)

for such

increased

of processed would in

the

now

of

be

foreign

wood; utilized market

at due


62 to

the

production

generation; complex

and

environment

The

that Code

by

Armas

been

foregone,

losses

in

for

its

the i

domestic

wood

products

been

able

was

865).

would

have

because

facilities. findings advantage

of Floro

industrial

revision

the of the

and

of processed

that

the

adds due

se_m others

on

_hilippine

been

have

ban

been

markets suspension wood

that

lack

wood

total market

of processing

light

of the

comparative

exports

ban

employment

use

of

not have

exports

in the

the

processed

of the

additional

had

domestically,

the

would

being

products'

that

processed

been

condition

forest

to absorb

the

the ban

would

adds

to increased

then,

have

total

in the

lo_s

that

would

a sufficient

of a sluggish

also

a study

the Philippines'

(1978)

had

had

the

in

that

there

had

and all

foreign

expressed gains

that

advantage

Indeed,

generated

It would

was

is not

have

the

because

Quilloy been

income

within

measures,

by Quilloy

would

to do s_.

(P째Do

out

country

implemented

recommended

the

the

earnings

comparative

market

into

concluded

points

study

ban

exchange

He

he also

been

at

implemented with

to the

exchange

A latter ban

to be

created

foreign

1976.

having

products;

development

looked

resource-rich

market. total

Armas

foreign

implemented; a forest

be

timber

1975.

in

in

quality

was

opposition

(1976)_

implemented

ban

would

in

Initial

better

infrastructure

sitesj

Forestry

of

mentioned


63

above, next

and

marketing

section,

fully

the ban's

forward

that log

such

decrease

linkages

usual

would

have

of wood

for

logs

and

the

part

of wood

in

not

the

yet

be

log

prefer

considered

products

products; buyers_

market

the then

upon.

The

same be

amount

sold

the

hoarding

price

constraints

housing

at

following

a study:

government

and,

would

Whether

would

income

of

markedly

domestic

for such

retailers;

the processed

not

of maintaining

to be

out

production

to the

inv@stigated

emphasize

phasing

on though째

to be

products

the

log

which

the backward

industries

production

to sell

instead

into

controls on

needs

of the

local

market

populace.

Forms for wood policies,

also

looked

of whether

domestically

prices_needs

practices

logs,

could

improv_with

domestic

prices

processed

aspects

which

to be researched

would

lower

of logs

local

explored

wood-based

be

question

remains

much

of the

hence,

exporters

(1978)

wouldb

The

(and

increase)

at

are

implementation

study

linkages

exports.

log

which

realized.

Villiran's and

problems

products such

which need

of government

as

tend

need the to

evaluation

intervention

in

to be explored. seven

push

the

studies.

per

cent

final If

the

In addition, tax

on domestically

product's both

specific

price

the export

sold

upwards market

and


6_,

the local the wood off

market

remain

processing

of unskilled

aggravate

the

Marketing

Aspects

The as well wood

the

export

affect

the

of

firms

forest

monopolistic

by

lay-

would

of processing

taxation

plants

policies

the pressing

issues

on which

industry,

up

with

of

the

such

es

those

following

of

results-

transport:

processing

facilities,

plants;

iufrastructure

support,

vessels;

charges

in the

internationml

scene.

government

manufacturing

and

products

freight

looation

themselves.

size

wood

came

port

uneconomic

caused

(1977)

shipping

and

in

products.

on the

(2)

shipping

The

of forest

location

(3)

and

among

(1) uneconomic

and

to massive

workers

tariff

are

inadequate

l_ad

operations

problem.

of

studies

problems

might

location

effects

and PDCP

decreased

semi-skilled

unemployment

marketing

(1968)

on the

and

processing

Several EDF

industries

uneconomic

as

sluggish,

of processing

policy, A survey

products

came

as

well

by

Moran

up

with

plants as

the

(1978) the

may

be

said

orientation of pulp

following

and factors

to be of the paper


65

considered

by

(arranged low

firms

according

seller's

obtaining low

such

to rank):

price

on

freight

cost

of

of pulp

and

true

where

for lumber,

even

bulkier

Moreover, processing

final

paper

than

plywood,

and

plants

has

structure

and

electricity wood

products

points

all

(PDCP,

1977).

have

of processing

are usually

is

are

among had

the

not

others째

to gather

country,

a need,

plants,

then

be

are

on the

in

and availability

then

considered_to this

located well

involved째

of In

instead

of

the

resulting

to plan

coordination

in areas

foreign

latter

with

of infrastructure

where

and

high

of processed

several

transport

optimal

the

infra-

implying

from

for the

exporting

concessions째

buyers

in high

the

to be

the

developed,

Thus

may

plants,

location

or within

and,

location

concessionnaires

near

of

manufacturing

(sawlogs)

all

plants

utilities

over

There

program,

processing

costs_

may

The

processing

required

concessions

labor;

wood

government

yet,

skilled

resource-oriented.

raw

And

of

been

local

with

csst

also

to promote

equipped

freight

veneer

policy

eagerness logs,

low

market-oriented_

materials

government

location

of raw materials;

products.

products

rather

raw

of plant

availability

availability

shipping

be resource-oriented

choice

raw materials;

raw materials;

of plants

be

in their

loading: costs

allocation

reforestation utilities.


66

Identification

of log-excess

not

sufficient

for determining

this

neglects

those

important

mentioned

While conducted

of

on

need

this

is

tion

plants

plants cost

from

total

as

for

the larger

resource to

provide

evolve

out

than

not

(Rapera,

of in

terms

used

optimal

points

that

total in a

there

is

a

central;

capacities

a mixed

number,

of

integer

types

location,

of wood

of (a)minimizing

associated

and

processing

log

plants;

pmanufacturing

of scale

where

a plant-location-alloca-

to processing

product

economies

the

based

the study.

1978)

different

areas and

expanding

to develop The

model

processing

determined,in

model

excess

wood

tools

study.

a program

found

additional

the

allocation

He

analyzed

considering

below

to be

firm-specific

minimized.

was

costs

levels,

supply

study

log

set-up

for

such

needs

1,535

capacities

were

study

from

for Mindanaoo

production

used

a log

better

programming model

is

sites,

of logs

an

was

Another linear

location

regional

problem

costs

region

existing

be

developed

to establish

whether

areas

considerations,

mentioned

could

the transportation

Mindanao

plant

location

and

those

which

transportation

(c)

a plant

such.as

Arafio (1976)

surplus

above.

such

analysis

log

marketing

on a national

researches

and

transport

(b)minimizing

costs; with

and, different


67

plant

sizes

products. the

data

which

study's

realistic

and

expansion

levels

which

of some needed

be

result

on

price

in wood

related

for

(2) creation

various

Processing

of Minor

Processing for

development

generate

using

use

of

developments

the

capacities

utilization

export

to meet

types;

ban;

local

(2)

(3)

huge

(4)

economies

studies

investment

to be

used

for

plant

Forest

could foreign

for wood

for wood

of

on the (I)

optimal

demand

requirements,

to be made:

body

plant-

following:

and

the log

plant

of tree

have

needs

which

recent

more

also

of minor

additional

a study

Accompanying

would

local

study's

stabilization;

of a marketing

fulfilling

of the

analyzing

of

processing_

m_tters

generalizations

establishment

satisfied

incentives/disincentives

of

for

to

required

more

ports,

need

outlays

ing

of such

implementation

as

wood

on assumptions.

on processing

as well

for specific

against

mn account

incorporating

is urgently

full

levels

cautions

operationalization data

the

scale

however,

based

(I) implications •with

demand

findings,

were

The

ations)

meeting

Rapera,

from

(e.g.,

while

products;

follow-

forms

of

location;

(3)

assurance

products.

Products

forest serve

products local

exchange°

indicate

needs, Some

potential

as well

problems

as

help

related

to


66

such development, Pesea_h

however

pose challenging

issues

for policy

such as:

(I)

(2)

mampant

dumping

of surplus

bookpape_

Asian countries

(Mendrano,

e_/_t al, 1976);

seasonality

of supply

by certain

of raw materials,

case of furnitu_-e production

(MOSCOSO,

in the et.al.,

1979);

(3)

difficulties negotiate

with numerous

manufacture (PCARR,

(4)

furniture

scsmcity

Resesmchee

in having

producers

to

who

of various

due to conflicts

of a particular

industry

are needed

qualities

in the minor

ape generally

labour-intensive,

in

area (PCARR,

1978);

for the furnitume-

1978).

in order

planning

forest

capitalization

(PCARR_

comprehensive

Pupal development.

small

pmoducts

of wood poles

the need to increase making

buyers

$978);

licensing/use

(5)

met by foreign

to p_ovide forest

basis

products

and th_efore

for a more

industries,

are significant

which for


PART RESEARCH

AND POLICY

ISSUES

introduction

The Forestry

following

are

Development

(1)

the

Program

objectives (Cortes,

to develop

and maintain

at maximum

productivity

will

make

maximum

of

the Philippine

1979):

the

country's

to assure

contribution

resources

that

to

they"

the national

welfare;

(2) to complete with

top

priority

of degraded

(3)

the

forests;

to promote users

and

exploiting

to the

stabilize

1.4

barren

million

forest

if not

activities

areas hectares

entirely

of illegal

occupancy eliminate, encroachers

and,

ecological

to adopt

of all

watersheds;

to minimize,

destructive

in the

given

critical

to concentrate in order

(4)

the reforestation

balance

environmentally

forest

resources.

by

requiring

sound

methods

forest of


7O

In

the same

strategies

(I)

paper,

Cortes

adopted

outlines

for achieving

the application yield the

forest

full

(2) closer

Such

renewability which

and

it cmn

provide.

out

othersf

as a result

Presidential

in more

formulation accomplishment

and

of BFD's

thru

users;

citizen assistance;

program

cognizant

the many

(PCWID,

of

the

(1976

Industries

body are

in

the

spelled

1979;

of

products

for all

the potential and

serT_ces

objectives

_ 1980),

@ollaborative

on Wood

of PCWID

reports

are

in BFD

Folicy-making

efforts

due

forest

of foreign

protection

Achievement

detail

Committee

_ n_'j r fcrc_t

with

over

activity

availment

strategies

forests,

spelled

develop

lands.

and

of

control

forest

sustained

quality;

reforestation

a comprehensive

objectives

and

and to

forests

to environmental

participation

use

principles

of the

supervision

basic

objectives:

multiple

management

(3) intensified

forest

following

these

of the

potentials

attention

(4)

the

work

among with

Development country, out

1980).

are

the (PWCID),

Policy

in the

l_tter's


71

Basic

Issues

in Forestry

Development

Planning

1. The Need for an Inventory of Factors in the Philippine Forestry Sector

A pre-requisite the

development

quantities

land

qualities and

its

technology.

Although

have

been

already

eto

al.,

1978;

of Finland continue This at

data the

sources,

instead

or aerial

socio-economic

profile

climatic, forest

and

renewal

communities gathering Sajise,

in

1976),

factors

1979)o

information, UNESCO-MAB

of

such

of

private

to

work and,

to be

research

initially

photos,

secondary

account

upland

development

as

to

detail.

order

farmers;

the

Government

information

in

need

these

is a need

satellite

Existing

and

BFD/ILO/

systems

which

and

(Lachowski,

and, in more

industries;

which

on

NRMC

there

through

and

studies

1979);

(1977),

of upland

activities

(R_ros, such

alo,

cropping

of

for

available

capital;

(1975),

photographs,

forest-based other

type

gathering

of

of the

labor;

studies,

the

aspects:

laborers

, et째

these

of strategies

of production,

by DAP

and PCWID

following

of

factors

inventory

necessitate level,

of

attributes;

Lorenzo

conducting

ground

formulation

is knowledge

conducted

(1977),

would

the

of a sector

and

include:

to

of Production

for

farmers;

conditions

biophysical, considered

in

of upland units

the UPLB-UHP institutions

which (Raros

are &

conducting


72

project areas can

pre-feasibility only.

be

Hence,

used

in

manner,

researchers

the

for

different

into

on

aspect째

findings

on a few are

areas

conduct

of the

of

inventory

the current aspects

way,

aspects type

one

in

of

of studies of

particular

the inter-action

of production

country째

practice

in

pilot

recommendations

multidimensional

specific This

factors

between

forestry

are

taken

account.

Availability then

to

foCusing

other

the

instead

focusing

each

the

of

is a need

are

their

for all

because

there

a holistic

area

not all

to apply

Moreover, forestry,

studies

allow

design

assessment

Umali, such

against bution

1979).

schemes

a specific of

the

2. Formulation Development

The increase pursues

Various

could set

on

in quantities, its

various

which costs

then

be

sector

the

and

land

capacities,

and

sustainable benefits

for

developmental

goals째

will as

(Revilla,

the

contri-

objectives.

for A Comprehensive

in varieties,

the

evaluated

optimizing

sector

would

associated

and

to development

forestry

snd

are

forest

identified

of criteria

of A Framework Program

on

productive

schemes

forestry

demands

information

of the

of management

1979; with

of basic

Forestry

continue

to

the country

Specifically,

the


73

need to

for

food,

energy,

water,

the traditionally

production,

will

recognized

exert

more

servation

and utilization.

assume

the

in

objectives which

would

account Only can

nation's

needs

the

when

have

such

forestry

The

on

through

while

of

strategies

be

would

of criteria, taking

forestry

concretized,

in

con-

development

a set

identified,

are

development

and

addition

production,

forests

of growth

characteristics

in

for timber

forest

rolefthat

specified

criteria

balance,

of forests

pressure

to be

peculiar

use

pursuit

to be

then

ecological

into

production.

forestry

formulated,

terms, and

operationalized.

Such ment

formulation

program

would

disciplines It would

and

also

of a comprehensive

entail

agencies,

require

forest

activities

of the

latter's

quality of

programs

of the

provide

insights

ment

effects

easily

conditions

from

among

well

made of

forest

because

the various

the

role While

private

vurious

implies

several

impacts in

a better

development studies

and rural

conclusions

ofdissimilaritles countries

sector.

communities,

in rural

industries

develop-

of various

ef the

This

Grayson,1976),

them

as

on nearby

life.

government. into

participation

evhluation

the sector's

(eog째,

drawn

as

the

certain

understanding

the

forestry

studied.

abroad develop-

cannot

be

in the

terms


74

3.

Operationalization of Multiple Use Sustained Yield Forestry Concepts

Given of

the

which

forestry would

mental

sector,

defined

in

economic

terms째

forestry

terms

From would

commodities

these

within

a generation

economic

sm_tained

result

in multiple

sector's would

side,

mean

economic

All

relationships: (local and

and

services among

would

foreign;

corresponding provided

others.

of

entail

yield,

sustgined

reliance

in

distribution

would

well.

of

generations. most

From

likely

the

private

in practice,

of the

close

(physical

market

the

would

and

viewpoint,

different

life

concrete

firm,

given

the

faces_

needs

by

the

yield

management

self

forestry

sustained

it

supply

account,

across

develop-

ecological,

sector's

fo_es_,as

perpetuation

these

and

to

in more

forest

services,

yield

economic

constraints

into

program

sustained

biological,

and

use

and

yield

public

take

forest-based

Such

of

the

development

operationalized

Sustained

capabilities

contribution

forestry

can be

and

a forestry

sector's

use

terms.

be

yield

the

management

of resources

and,

multiple

realistic

then

assessment

optimize

goals,

forestry and

the

and Economic

and

versus controls;

forests;

monitoring

of the

economic)

effective valuation

foreign

and

following

demand

demand)

adjustments

of amenities

exchange,

and

labor,

and


75

4o Evaluation

of Forest

Micro-level need

to be

should

studies

conducted,

appropriateness

in

of present

lishment;

to provide

of

labor

The

renewal

strategies

insights

on their

following

aspects

studies:

the strategy

processing

of local

forest

conditions.

in such

com-_leteness

Strategies

order

to local

be included

(a)

Renewal

and

and

(plantation

marketing

indigenous

estab-

aspects;

materials

use

and

tech-

nology;

(b) identification costs

of

of beneficiaries

a particular

(c) availability

of

and

bearers

of

project;

support

facilities

and

infra-

structure.

The

strategies

family

approach

PROFEM; tree

far_

various

projects, ing

lease

the

centers;

like.

to be

tree

evaluated

macro

level,

products

inthese tree

agro-forest

terms

there

is

a need

products

farms; and

others_

identify

of reforestation

of strategically marketing

to

are:

farming;

contract.reforestation,

for wood

establishment forest

communal

plantations;

agreements;

demands the

need

of reforestation;

industrial

At the

which

located

arrangements;

processand

the


76 5.

Studies on the Local Environment Within Forest Development Strategies are Being

There political,

is

and

forestry

a need

development demands

the

controls

(whether

for satisfying

this

taxation,

tenure

policies,

and

permits,

and the

An affect view

on

the

would

by

forest

policy

of

these

would

need

industries

on

such

would

relating to

or legal)

specifi_

as

and

policies

leases,

cancellation

to be

before

oneto

allow

on

pricing of li_en6es

(eog.,

policy

legal,

Floro, due

and

factors

on

certain

such

studies

have

1978;

Segura,

et.

to

new

formulation

development

to

other

effects

implementation.

whether

which

policy-makers

Though

continu,d and

environment

or negative

goals.

predict

forestry

local

economic,

formulation

for encouraging

wood

permits,

on the

positive

attempted

studies

allow

implies

and

studies

controls,

which

developmental

they

fall

development

forestry

1977),

This

demands.

study

to produce

been

which

like.

inter-act

already

e_onomi_,

technological,

of concessions,

legal

manner

forest

the

within

place.

economic,

integrated

forest

the

such

assess

environment

is taking

economic

Under

constantly

institutional

the

used

to

Which Implemented

the

The

in

conduct

or implementation

controls

would

thrusts

alo,

be

envisioned effective

or


77

would

just

result

The will

law

by

practice

the part

breakers,

the need the

to

graft

of doing

of

laws

which

that

are

in the

_owards more

not

framed neEatiTe

too much

policing

productive

and

punishing

activities_

the ill

effects

some

of which

forests,

attempts

followinE

and corruption;

to rectify

users

laws.

I indicate

results

of government

trying

priTate

in Part

this

of

instead

for

to circumvent

circumvent

Moreoyer,

the on

review

be made

realiltically.

effort

attempts

literature

always

effects:

in

of wron_d_ingm may

be

irrever-

sible.

The purposes: in the and

following (I)

past;

the and

destructive

(2) various loggers.

program

problem

shifting

problems With

of

respect

being

tried

vations,

the

however,

forest

1980;

Segura-de in

of

for

the

Only

did

cancellation

destructive

most

after

1980); about

the

illegal

Occupancy view

the

of the broader productivity. recent

licences.

activities

_ngeles,

uncertainty

of

punishing

authorities

and

the

cultivators

Forest

a s part

loggers,

that:

at

whenthe

landlessness,

illustration

shifting

attempts

cultivation

show

los

cited

formulated

to erring

other

results

was

poverty,

is

are

prosecution

Management of

cases

punishment Casual

the cancellation just

follow

and,

license

tenure

obserof licenss,

(e.g.,

Revilla,

cancellation

of the

other


78

loggers. rates

Higher

uncertainty

for present

in more urgent

forest areas

implies

earnings,

which

destructive

for

_aJibility

and

systems

regulation

development

qnd

of economic

sustained

which of

which

forest

, in

activities.

research,

edministrative

higher

are

also

And,

sector

be

It is in

via

developing

by

IV,

is partly imperative

trade

be

also

certainly

examine

logging to

the

policies

forestry

the operationalization

Environment

forest

the international

therefore

are

result

concepts.

I and

development

foreign

well

self-sufficiency

destructive

trade being

that

defined,

Affecting

for wood

geared

the

activities

towards

role

and

products.

of

issues

the on

forestry the

in forest-based

commodities

research

as discussed

need

tackled.

Concluding

Remarks

The in

in Parts

affected

forestry

trade.

for

shown

These

favorable

6. Contlnuoas Monitoring of the Global the Philippine Forestry Sector

As

could

should

are

preference

turn,

forzulating

renewal yield

time

detail

sections

specific in Parts

are

to priorities

policy I-IV,

presented for

and and

broadly

in Table

research.

discussed

2, and

A rank

issues

are

in

ranked

of _ indicates

the

previous

according the

highest


79

priority.

This and in

paper

policies

which

the Philippine

forestry

included

really

be

studies since

It is

oriented

(2)

studies

on

in a more

of

these

in

Of the

around

are

written

recommended

in

one

on

be

fuller

taken

issues;

arises

for

and,

and from

(3)

per

collaborative the

too

view

that

which

cent

can

And,

such

technical

(I)

forestry

future

hundred

policy-makers

that:

be conducted

and

sector

20

to the

researches

formulation

general,

forestry

accessible

them

coordinated

,,

on policy

effort

only

synthesize

to be policy-oriented.l-_

therefore

efforts

recommendation

--

paper,

easily

researches

issues;

implications

the Philippine

considlr@d

a majority

and

in particular.

this

not

to review

development

on

in

are

terms.

have

development,

or so references are

attempted

more

policy-

development

utilization studies manner. a number

of

be

conducted

The

latter

or

,,

It must be noted here, that basic and applied researches whi@h abound in Philippine forestry literature are not included in this review. For a summary of such resear6hes, see P_RS (1977) and materials of PCARR FORI, FORPRIDECOM, BFD, PCWID, and the UpLB College "of Forestry, among others,


8o

forestry

development

a holistic

view

development

the

planning,

of

achieving

by

various

multiple disciplines

coordination policy

of

problems

among

fgroups,

in an

ad hoc

manner,

urgent

need

to revise

policy

who

had

have

more

the

time

manner

comprehensible

forms

he is

one Which

objectives, and

and

consults

ueeds

the

potential

While

policy-makers

doubtful

in.

o--O--0

various

problematic

policymakers

And,

a researcher

usually

It is by

more who

so,

is of

is on

meetings,

is already

investigate to the

there

there

made

_f

to be undertaken

like v these

when

at allo

the

of inter-agency

policies.

get

has

vgovernment form

la_k

Forestry

institytions.

i. e.,

to

by a

caused

sector.

recommendations

detailed

policymaker

being

in the

consultative

separate

forestry

various

formulation

are

happen a visibly that

the

researchers, areas

in a

in more when the

a particular same

discipline


81 Table @. FOREST RESEARCH

AND POLICY PRIORITIES

Topic

Rank

Inventory of Factors Forestry Sector 1. Forest

of Production

in the

Resources

2. Capital

2

Investments

3

3. Labor

2

4. Shifting

Cultivators

2

Formulation Forestry

of a Framework for a Comprehensive Development Program

I. Case studies on the local impacts based activities on developmental concern _. Local

use of forest products

of forestareas of

1

and commodities

1

3o Availment of forest recreation facilities, parks and wildlife reserves by local and foreign visitors 4. Cost Benefit Analysis energy Development 5. Food

production

3

of Dendro-

in upland

communities

I

6. Government revenue from the forestry sector; Income and Employment in Forest Lands; Foreign Exchange Generated째

4

7. Formulation of Criteria to be Used in _n_lyzim_ Forest Development Activities-in Concrete and Operational Terms

1


82 .......

Topic

Rank •.:-,...., , ,-.

L

m,,,

Operationalisation of Multiple Use and Economic Sustained Yield Forestry Concepts I. • Factors in

the

which

affect

private

forest

harvest

in

forest

3. Evaluation of the Selective and the Allowable Annual

production

2

Logging System Cut Formula

I

4. Supply and Demand 0f forest-based and Services; at National and Levels

Products Regional

1

of Costs and Benefits of Various Harvest Decision Criteria; of Multiple Use Schemes

2

6. Self-sufficiency

Evalu&tion

2

sector

2. Cost considerations activities

5o Valuation Forest Various

decisions

in Specific

of Forest

1. Case studies Occupancy Industrial

Renewal

Forest

Products

Strategies

on the Family Approach to Forest Management;Communal Tree Farming; Tree Plantation; etco

2'

Cost benefit analysis renewal strategies

3-

Infrastructure Communities

1

of

alternative

and Social

facilities

1

forest

1

in Upland

2

4o Components of Watershed Development Strategies: 2 Institutional Linkages; Human Resource Development; MaEketing and Processing Facilities 5. Generation of Funds Strategies

for Various

Forest

Renewal

3

....


83

Topic •

•

Rank ,

,,

,,

u

,

Studies on the Local Environment within Which Forest Development Strategies are Belng Implemented I. Analysis of the Taxation and Pricing in the FoEestry Sector in Relation Economic Sustained Yield Concepts

Policies to

I

2. Evaluation of the System by which Use of Forest Lands areoAwarded for Specific Purposes; in terms of Conservation Orientation, Economic Sustained Yield Forestry from the Private User's Viewpoint; Equity considerations

I

3. A_lySls of the Punitive Measures Taken Against Destructive Agents of Forests: Erring Loggers; Shifting Cultivators; Hunters; etc.

2

4.

3

Inventory of Infrastructure, Port, Shipping, and other Marketing Facilities for Forest Products

5. Analysis of Local Marketing Forest Products 6.

of

3

Government Policies Affecting the Use of Forest-Based Products, such as Housing, Price controls on Wood Products; Fuelwood Use, and the like

4

7. Analysis of Measures taken the Final Implementation Ban

Arrangements

by the Firms for of the Log Export

8. Given the Forest Renewal Program, and Forest Harvesting Decisions Based_oh Econemic_Sustained Yield Concepts, Detormine Location of Processing Plants, Human Resources,Infrastructure,

the Optimum Investment in and the like

2

3


84

Topic

Rank

Continuous _'i,_ni_-_rln_of the Global Environment Affecting the Philippine Forestry Sector 1.

Assessment F Forest

of Competitiveness of Philippine Products in the Foreign Market

5

2.

Evaluation of Marketing Arrangements Entered into with other Forest Products Sources;

3

3. Analysis of Foreign Trade Controls (Tariffs, Quotas, etc.) in Terms of Their Impact on Specific Forest Development Activities

2

Others I. Re-examin_tion of the Lo_ Export Ban and Conditions it was Basea On

3

2. Optimum Investment in Human Resources in Forestry ; Assessment of Forestry Educational System and Forestry Extension

3

3. Analysis of the of financial Sector

3

Availability and Availment Capital in the Fc_'estrz

4째

Evaluation of Consistency Between GenFral Policies and Implementing Rules and Regulstions

4

5.

Analysis of Existing Mechanisms in the Conduct and Utilization of Research

5

Forestry

in


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