China's Forest Sector Markets: Policy Issues and Recommendations
SUMMARY Based on the papers contributed to this Special Issue and other studies an effort is made to identify the major policy issues facing the Chinese forest sector. The policy analysis is organized around the so-called ‘supply china’ (from stump to final products' markets). The discussion of policy issues and implications centers on the identified large and growing gap in the demand/supply balance of forest products. A major problem to carry out the policy analysis is the identified lack of consistent and transparent data for the different components of the ‘supply chain’. This is a situation which must be substantially improved in order to undertake relevant policy setting for the Chinese forest sector.
China – Global Competitor or Growing Export Market?
The annual rate of growth in the Chinese economy in the ten-year period to 2005 averaged 8.5%. As a producer and consumer of paper, China is now surpassed only by the United States. If its paper consumption continues to rise at the rate of the past ten years, the coming decade will see China accounting for about 40% of the global growth in paper and paperboard consumption and about 30% in sawn softwood consumption. The state of the Chinese economy and its forest industry would then be the largest individual factor influencing the global forest sector. The impact on Finland would be both direct and indirect and would concern not only global sales and market prices of roundwood and forest industry products and the industry’s location decisions, but also, more generally, the sustainable use of forests worldwide.
Towards mutually-beneficial company-community partnerships in timber plantation: lessons learnt from Indonesia
The biggest challenges in establishing timber plantations in Indonesia concern a range of social aspects, in particular those dealing with people living inside concessions and in the areas surrounding plantations. CIFOR's research shows that a sustainable supply of timber may be achievable through partnership schemes that encourage companies and local communities to work together in sharing both the benefits and risks of investing in plantations. Despite recent private sector support for partnership schemes, there is evidence to suggest companies often do not have a clear idea of the measures needed to ensure tree growers' full commitment. In the short-term, companies would not gain economic benefits from the amount of wood produced under partnerships, but more by sharing the risks and benefits with local communities in establishing timber plantations. However, the challenges are complex and the long term viability of partnerships depends on ensuring the partnership can deal with to the changing condition.