64608 LAW COMPLIANCE, AND PREVENTION AND CONTROL OF ILLEGAL ACTIVITIES IN THE FOREST SECTOR IN SURINAME Country Assessment Preliminary Version Maureen Playfair The World Bank Washington, D.C. © 2007 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org/rural E-mail: ard@worldbank.org All rights reserved. The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail pubrights@worldbank.org. This analysis has been completed with funding provided in part by the European Union. Table of Contents iii 1. Introduction 1 2. Status Of Illegal Logging And Forest Sector Law Enforcement 5 Defining Illegal Logging 5 Volume of Illegal Logging and Other Illegal Activities 6 Volume of illegally produced wood 6 Estimating the volume of undetected and unrecorded illegal wood 7 Consumption of non-industrial wood 8 Other illegal activities 8 Illegal gold mining 9 Types of Illegal Logging 9 Introduction 9 Forestry production by tribal peoples 10 Mobile, portable mill, and chain saw wood production 10 Border and Trade Issues 11 Impact on Government Finances 13 Impact on Indigenous Communities, the Rural Poor, and the Environment 13 Impact of illegal logging on the tribal populations 13 Conflicts due to forestland intrusion 14 Impact on the environment 14 Impact on the Forest Industry 15 3. Forest Sector Institutional Analysis 17 Policy Framework 17 Major policies related to illegal activities 17 Drivers behind illegal activities in the forest sector 18 Law enforcement mechanisms for controlling illegal logging 18 Political will to address illegal activities and stakeholders participation 18 Legal Framework 19 Legislation 19 Incentives and disincentives to legalize forestry operations 19 iv Procedures in timber sales 20 Procedures for logging operations 20 Shortcomings in the legal system regarding illegal forestry activities 20 Institutional preconditions for improving legal compliance 21 Monitoring and control system 21 Agencies in forest law enforcement 21 Capacity at the SBB for monitoring and control 22 Monitoring and control activities in timber production. 22 Monitoring of other forest production activities 23 Dealing with violations 23 The issue of corruption 24 4. Underlying Causes Of Illegal Activities 25 Socioeconomic Root Causes of Illegal Activities in Forestry 25 The socioeconomic situation of forest producers 25 The issue of good governance 25 Economic Incentives and Disincentives to Comply with Existing Laws 26 Key Issues Within the Government Affecting Illegal Logging 26 5. Knowledge Management 27 National Forest Database 27 Capacity for Mapping and Demarcation of Forestlands 27 Forests assessment and database information availability to the public 28 6. Forest Sector Competitiveness 29 Introduction 29 Restrictions and Constraints Affecting Forest Sector Competitiveness 30 Forestry legislation 30 Capacity and professionalism in the forest sector 30 Land rights 30 Forestry infrastructure 30 L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R Credit and investments 30 Communication and cooperation 31 Increasing Sector Competitiveness 31 7. Conclusions and Recommendations 33 Annex 1: Key Actors and Contacts for Addressing Illegal Activities 37 References 39 Figures v Figure 1. Trend in the Consumption of Saw Logs for the Domestic Market (Cubic Meters) 8 Tables Table 1. Illegally Produced Timber Documented by the SBB (Cubic Meters) 6 Table 2. Production and Destination of Roundwood from 1990–2005 (Cubic Meters) 7 Table 3. Production Level of Logging Enterprises in Suriname (Cubic Meters) 10 Table 4. Export Volume of Wood per Region and Country in 2005 (Cubic Meters) 12 Table 5. Logging Activities 20 Table 6. Monitoring and Control Activities 23 TABLE OF CONTENTS CHAPTER ONE Introduction 1 uriname is situated on the northeast coast of belt� (a 40- to 100-kilometer wide strip that stretch- S South America, and with a land area of just 16.4 million hectares, is one of the smallest countries on the continent. The population totals es from east to west) has been the most important timber production area. Timber extraction also occurs in a few swamp and savanna forest areas 480,000, with nearly 70 percent living in the capital along the coastal plain. In recent years, timber har- city. Paramaribo, and the surrounding district. vests have expanded further to the south, into hilly Meanwhile, a quarter of the population lives in and mountainous areas. Rapids along the principal smaller settlements along the coast and about rivers frustrate water transport of timber. About 70,000 people from tribal maroon1 and indigenous 7,000 hectares of pine plantations and smaller communities live in relatively small- to medium- experimental broadleaf plantations complement size settlements and villages in the hinterlands. the natural forest, producing a small amount of More than 90 percent of the country is covered timber. with natural vegetation, 80 percent of which is The country’s productive forest area was esti- forested. Vegetation types are related to the various mated to cover about 4.8 million hectares in 2005. land zones, and the most important vegetation Experts doubt that the forests in the southern part types are: of the country will be used for commercial wood production any time soon because of the area’s ■ Various types of hydrophilic vegetation in the irregular topography and lack of infrastructure coastal plain, such as mangroves along the coasts (National Forest Policy 2003). However, the people and various types of swamp forest—some of in the hinterlands use these areas to meet their sub- which contains valuable tree species like virola sistence needs for forest products. sp. and possum. Unlike most South American countries, ■ The high and low savanna forests Suriname is not losing its forest cover, and no reg- ■ The high dryland interior forest, which varies in ular statistics on deforestation are published. In the species distribution, height, and diversity past, forest clearings occurred during very specific periods. About 405,000 hectares of forestland has Logging in Suriname is concentrated in the been converted to other uses. Of this, shifting culti- more accessible northern part of the country. Over vation accounts for close to 250,000 hectares. More the past few decades, the 2.5 million hectare “forest recently, the development of bauxite and gold meaning has led to forest clearing. About 200,000 1. Traditional black communities. hectares of forestland is reserved for future conver- sion for mining, hydropower, agricultural develop- hectare. More than 100 different timber species are ment, and settlements. harvested and processed. Protected forests cover over 2 million hectares The data on fuelwood and charcoal production (approximately 13 percent) of the land surface. is incomplete. No official records exist for subsis- These protected areas includes nearly all mangrove tence use of fuelwood and charcoal by rural popu- forests and other unique ecosystems along the lations. Documented fuelwood and charcoal pro- coastal plain, with the greatest stretch of protected duction in urban areas varies from 2,500 cubic forests found in the interior to the south, including meters in 2003, to 1,700 cubic meters in 2005. the 1.6 million-hectare Central Suriname Nature Fuelwood production consists almost completely of Reserve. Despite the high percentage of protected Eperua falcata (walaba) posts used for cremation forests, some relevant forest types are not yet purposes. included in nature reserves. Both the volume and value of wood exports have 2 Under the 1987 Constitution, all forests in the dropped from 1998 to the present, with the excep- country belong to the state, with the exception of tion of 2002, when a large volume of round logs those on privately owned land or covered by long- (22,800 cubic meters) was exported to Cuba and term leases. Land tenure rights for agriculture can China. In 2005, about 12 percent of the total round- be granted for up to 40 years. In total, this repre- wood production was exported, with a value of sents only about 70,000 hectares. The state grants about US$3 million. Roundwood makes up 50 per- user rights on public forestland for timber harvest- cent of the volume exported. As in prior years, most ing and mining, and licenses for fishing, harvesting of the exported volume during 2005 (about 50 per- of non-timber forest products, and conducting cent) went to Asian markets, with about one-third nature research. exported to Europe, and the remainder to the Timber production has been approved on 2.3 United States and other countries in the region. million hectares. To date, timber concessions There are no figures available for domestic uti- account for 1.2 million hectares, while an addition- lization of timber. Imported wood products consist al 70,000 hectares are assigned under incidental of wood panels, with an approximate value of US$3 timber-cutting licenses. Timber concessions are million, and end products such as furniture, with a authorized for areas up to 150,000 hectares, and are value of US$4.4 million. assigned for as long as 20 years. Tribal villages in Forestry contributes less than 3 percent to GNP. accessible areas of the interior have rights over About 4,000 workers are employed in the logging 500,000 hectares for communal use. Prior to the and timber-processing sector, with an additional approval of the Forest Management Act (FMA), vil- 500 working in forest management and research. lages were assigned wood-cutting licenses to man- This figure is about 5 percent of the country’s total age public forests. These areas are now classified as workforce. About 200 individual companies or community forests and considered part of the tim- license holders are active in the logging sector, and ber production area. Villages in the far interior have there are more than 70 sawmills in the log process- not received similar rights. ing industry. Chain saw or mobile sawmill opera- After two decades of decline, commercial log- tors process a considerable number of logs in the ging is on the increase in Suriname. The registered forest and then transport and sell the planks for fur- annual national roundwood production in 2005 ther processing. was about 180,000 cubic meters, up from less than A new Forest Management Act approved in 1992 110,000 cubic meters in 1995. Some 47,500 cubic outlined the parameters for sustainable and ration- meters of roundwood comes from the communal al use of forest resources, taking into account the forests. Estimates of sustainable production by var- interests of the forest dwellers, as well as nature and ious authors range from 500,000 cubic meters to 1.5 biodiversity conservation. An FAO technical assis- million cubic meters of roundwood per year. Local tance project (1997–2000), with funding provided companies apply selective logging systems, with a by the Netherlands, developed the implementing low harvesting intensity of 8 to 12 cubic meters per regulations. hectare. For larger, foreign-owned companies, the The issue of illegal logging is addressed only harvesting intensity averages 15 cubic meters per briefly in the 2003 National Forest Policy, stating L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R that illegal logging undermines the efforts for sus- the specific goal of: “sustainable forest management tainable forest management and is harmful to bona for the benefit of the (national) community.� fide companies and the national economy. One of The arrival of Asian timber companies in 1994 the strategic goals was redressing the proliferation raised awareness of the need to strengthen govern- of illegal practices, such as illegal gold mining activ- mental effectiveness, particularly in regard to the ities, illegal timber harvesting, and theft of plants management and supervision of the logging sector. and animals. The Foundation for Forest Management and CITES regulations affect the export of wood and Control (Stichting voor Bosbeheer en wood products from Cedrela odorata (a native Bostoezicht—SBB) was established in 1998 for this species) and mahogany (an introduced species). purpose. The forest authority approves certificates of origin, The SBB has no direct legal authority, but works which allow exporters to legally export wood from under the mandate of the LBB. The LBB is still 3 these species. engaged in nature conservation. A new authority, Suriname’s rating on the Transparency the Forest and Nature Management Authority; (Bos International Corruption Perception Index has en Natuurbeheers Authoriteit Suriname— improved. The country is currently ranked 82nd BOSNAS) is expected to be established by law and with a score of 3.2. With regard to the Index of will assume the functions of the SBB and LBB. Economic Freedom (2006), Suriname was ranked When BOSNAS becomes operational, the manage- 126th, with a score of 3.6, and is categorized as ment of both forestry and nature conservation will mostly undemocratic. The score on the regulatory be integrated within the same organization, provid- system is 4. The study suggests that excessive gov- ing the possibility for more effective and efficient ernment controls in pricing and licensing create control and monitoring. many opportunities for favoritism and corruption. Other sectoral plans financed by the The Forest Service (LBB) was established by law Netherlands are also relevant to forestry. The Plan in 1948. The LBB had gradually lost its operational for the Non-Urban Environment in Suriname capacity in core areas during the 1980s, and most includes funding for BOSNAS during its initial four timber production went unrecorded. Its current years. The Plan for the Department of Justice will legal mandate to regulate forest management comes also benefit the forest sector through the rehabilita- from the Forest Management Act of 1992. The LBB tion and staffing of police stations in the country, now has the legal responsibility for the manage- thereby ensuring their governmental presence in ment of all forests, including nature reserves, and the hinterlands. INTRODUCTION C H A P T E R T WO Status of Illegal Logging and Forest Sector Law Enforcement 5 DEFINING ILLEGAL LOGGING ■ Violation of the 150,000-hecatre limit on con- cessions via the establishment of subsidiary Illegal logging is defined in the regulations of the companies and control of multiple concessions Forest Management Act of 1992 “as the harvesting ■ Fraudulent acquisition of control of concessions of wood on state land without a proper license.� greater than 5,000 hectares through the purchase Furthermore, the harvesting of undersized trees or of mobile processing equipment to satisfy the protected tree species is forbidden under the FMA. conditions of the FMA. Typical illegal activities in Suriname include: Not all of the standards mentioned in the forest ■ Harvesting of wood outside concession bound- regulations are currently feasible or applicable. The aries sustainable timber production system in Suriname ■ Harvesting of wood before the harvesting plan is is evolving, and a number of regulations to ensure approved sustainability in the public production forest are ■ Harvesting of wood outside the assigned cutting not mandatory for all producers. Some exceptions compartment include: ■ Felling of trees that are not designated for har- vest in the harvesting plan ■ Lack of a quota system. Producers working ■ Transporting of forest products without the under the prescriptions of a harvesting plan—a appropriate log tags and transport bills key component of the concession management ■ Inaccurate log measurements and diversion of plan—are not allowed to surpass the maximum underreported volumes to secondary users allowable cut. ■ Manipulation of logs tags and transport bills to ■ Concession bidding is allowable under the law, hide the origin of roundwood and underreport but has not (yet) been applied in the Surinamese the volume harvested logging sector. ■ Felling of trees on privately owned land without ■ Protective forests, as defined in the provisional written permission of the owners forest classification of the FMA, are forests on ■ Commercial felling of trees in the communal slopes and adjacent to rivers and other bodies of forests without written permission of the village water. Logging is not permitted in these areas. authorities However, because these areas are not delineated ■ Felling trees in nature and forest reserves on the map or on the ground, this regulation is ■ Late or nonpayment of fees not enforced. TABLE 1 Illegally Produced Timber Documented by the SBB (Cubic Meters) Percentage of Seized timber Tolerated illegal and Roundwood and/or timber timber tolerated timber Year production charged with fines production production 2000 177,000 14,200 31,000 26 2001 163,000 3,300 21,000 15 2002 154,000 3,100 23,000 17 2003 158,000 1,300 9,000 7 6 2004 160,000 600 24,000 15 2005 182,000 3,600 14,000 10 Source: Foundation for Forest management and Production Control. ■ Only a few orchid species receive full CITES pro- 1. Timber seized or assessed a fine due to infrac- tection. Harvesting of the CITES listed tree tions and species (Cedrela odorata and mahogany spp) is 2. “Tolerated� timber produced on expired con- allowed under the current regulations. cessions.1 It represents a substantial percentage ■ Logging licenses are given on an area basis. of the timber harvested. Duplicate felling licenses are not possible. ■ Girdling or poisoning trees to allow their subse- In addition to this documented illegally pro- quent harvest is not an issue. duced timber, the SBB estimates that in the past five ■ Harvesting of undersized or protected species years, an additional 20 percent has been produced can occur in areas designated for clear-cutting illegally, but not detected (SBB, personal communi- when conversion to other uses has been cation). This figure is based on the information approved. derived from a survey conducted by the SBB in ■ The harvesting of poles and other amenity wood 2004 on the installed capacity. The total installed products from public forest may lead to the logging capacity is estimated at 200,000 cubic removal of undersized trees. meters of roundwood. ■ Illegal accounting practices are only possible to a The sector was believed to be working at close to limited extent. Export credits are based on the full capacity in 2004, with registered production of fiscal value for timber exports. However, actual approximately 150,000 cubic meters Based on these market value could be higher than the reported figures, the SBB estimates the additional, illegal and fiscal value. undocumented volume to be no more than 50,000 ■ The Ministry of Trade and Industry licenses pro- cubic meters (+33%) . As a conservative estimate, cessing facilities. Noncompliance with regula- the SBB assumes that illegal production is 20 per- tions concerning environmental protection and cent more than what is legally produced. Illegally labor laws that come under the jurisdiction of produced timber enters the market undetected and other ministries is common. unregistered by the authorities. Table 1 reports the amounts of illegally produced timber detected by the SBB. VOLUME OF ILLEGAL LOGGING AND OTHER ILLEGAL ACTIVITIES Volume of illegally produced wood 1. Timber production on expired concessions is illegal, but tolerated by the authorities in order to avoid stagnation of production. It is common for concession renewals to be The SBB maintains some statistics on illegally pro- delayed excessively by the lack of effective administrative duced wood. Illegally produced wood includes: procedures. L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R TABLE 2 Production and Destination of Roundwood from 1990–2005 (Cubic Meters) Locally processed Year Total log production Log exports industrial roundwood 1990 114,784 0 114,784 1991 105,177 0 105,177 1992 118,765 1,700 117,065 1993 93,122 1,200 91,922 1994 96,213 6,890 89,323 1995 104,668 13,000 91,668 1996 202,703 24,000 178,703 7 1997 179,228 29,000 150,228 1998 141,031 21,000 120,031 1999 89,930 16,000 73,930 2000 171,265 9,200 162,065 2001 155,135 5,600 149,535 2002 145,353 22,800 122,553 2003 147,053 1,130 145,923 2004 153,279 4,800 148,479 2005 170,391 7,200 163,191 Source: SBB annual statistics. Estimating the volume of undetected and national market, but no figures on the actual con- unrecorded illegal wood sumption are available. Similarly, the Ministry of There is no statistical information available on the Public Works is unable to provide exact statistics on actual level of wood consumption for the domestic the number of buildings constructed per year. market. Illegal timber can end up on the domestic About 10,000 houses have been built2 since 1980. market or be smuggled outside the country. This There is no information on the volume of wood section attempts to indirectly identify any abnormal used for housing, but there is a noticeable shift trends in the domestic consumption of wood by the toward increased use of steel, concrete, and various analysis of production and export statistics pro- types of vinyl sheets and tiles. duced by the SBB. With regard to the furniture sector, the Ministry Production statistics are derived from log tags, of Trade and Industry provides licenses for the which are filled in by timber producers and verified establishment of such industries. Many small furni- by the SBB. Export volumes are calculated at the ture producers work without licenses. The point of export, where logs and other wood compo- Chamber of Commerce currently has 106 compa- nents are graded, and the volume precisely deter- nies registered. The volume of wood used by the mined. An assessment of the saw log production for furniture industry is unknown. domestic consumption is made, based on produc- Both the construction and the furniture sectors tion and export statistics from 1990 to 2005. Trends purchase wood from local timber markets located are identified and exceptions noted. Imports throughout the urban centers. At present, 52 timber (mainly wood-based panels and semi-finished and markets are registered with the Chamber of end products) are not included. Table 2 provides Commerce. Timber is also purchased directly from information on the volumes produced and their the small producers who operate with mobile destinations. sawmills or chain saws in the forest areas. The SBB The construction and furniture sectors are the main consumers of industrial roundwood in the 2. Sectoral study by the Min PLOS on Housing. STATUS OF ILLEGAL LOGGING AND FOREST SECTOR LAW ENFORCEMENT estimates that unreported production could cubic meters. Most poles are exported, and the account for as much as 20 percent of the docu- remainder is used locally as telephone and electrical mented production. On this basis, the estimate of poles. Fence posts and other poles of various types undocumented illegal timber is approximately and sizes are used in the construction, fishery and 34,000 cubic meters. agricultural sectors. These items come from more It is far from clear that the variations from the than 130 small producers in irregular, mostly very general trend are in all cases the result of underre- small, quantities. The total production in 2005 was porting. In 1996, the Suriname Forest Service was 2,400 cubic meters. not operational and could not exercise its produc- Small operators also produce firewood and tion monitoring duties. The lower production in charcoal, but only that production destined for 1999 and 2002 might have been caused by the poor commercial use is monitored. It is estimated that economic situation in the country, which limited the subsistence use of fuelwood affects about 40,000 8 activity in the construction sector. A second reason people (IPCC 2002). The use of fuelwood in urban for the lower production in 1999 is the fact that the areas is insignificant, and what is consumed is forest service transferred its duties in that year to obtained from sawmill waste. In the interior, fuel- the SBB. In 2002, log exports were extraordinarily wood generally comes from land clearing and shift- high and caused a deficit in the national market. ing cultivation plots. Fuelwood (mostly mangrove) from the coastal areas is used in the fishery sector for fish drying. Consumption of non-industrial wood Production and consumption data for non-indus- Other illegal activities trial wood is not very reliable. In 2001, the SBB developed estimates of domestic consumption The violation of the access rights of tribal peoples is (Matai 2001). Production of important commercial a significant problem in the forest sector. Tribal products is partially monitored by the SBB. Most peoples find travel limited across concessions, and production comes from small-scale, informal pro- to traditional sites within concessions. This is a con- ducers. Squarely hewn poles are the most signifi- straint for the security of the food supply of forest- cant non-industrial wood products in Suriname. based communities, since the gathering of non-tim- Total production in 2002 was about 4,000 cubic ber forest products, fishing, hunting, and even meters, while in 2005 this figure dropped to 600 access to shifting cultivation fields, is hampered. FIGURE 1 Trend in the Consumption of Saw Logs for the Domestic Market (Cubic Meters) 160,000 Consumption in m3 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 Year Source: SBB. L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R Violations of the Labor Act are common. Forest areas. There are no precise statistics on the total workers’ rights are not respected with regard to extent of forest lost, but the Environmental safety, working, and living conditions, or in regard Department of the University of Surinam estimates to the number of working hours. In a scoping ses- that 20,000 hectares of forest have been lost through sion for Forest Stewardship Council certification, it small-scale gold mining (Carrilho, personal com- was found that timber companies in Suriname munication). Mercury pollution is another threat score low on social indicators for compliance with to the environment associated with gold mining. labor regulations and tribal people’s rights (SBB, personal communication). The situation of foreign TYPES OF ILLEGAL LOGGING workers employed by East Asian companies is reportedly even more unsatisfactory. Problems have arisen concerning the issuance of working per- Introduction 9 mits and their immigration status. More recently, unauthorized plant collection for The forest industry in Suriname consist of three research purposes has been reported. Collection of main types of companies wild species is only permitted under license from the Nature Conservation Department of the Forest ■ Multinationals Service. Foreign researchers and graduate students ■ Medium-size domestic companies are said to be the principal offenders. ■ Small-scale producers All three types may be engaged in the complete Illegal gold mining chain of production, including logging, transport, Gold mining is concentrated in the Greenstone Belt processing, and local or export sales. In addition, of the southeastern, eastern and central parts of the there are a number of contractors working as inde- country. Illegal and informal gold mining in the pendent loggers for the established companies and interior of Suriname is causing the loss of forest independent chain saw operators. Mobile and cover and environmental damage. Informal gold portable mill operators may work under contract to mining has increased rapidly since the 1990s, when the larger producers with fixed sawmills in the inte- gold mining became an important source of income rior, or as independent operators. Both round logs for the population in the interior. Brazilian miners and sawn timber are produced by these operators. (garimpeiros) with expertise in hydraulic and small- Round logs go to the sawmill industry or to the log scale mining operations migrated to Suriname at exporters. Sawn wood is trucked to the independ- the same time. ent wood markets, the furniture industry, and the The government has virtually no control over construction sector. these informal gold mining activities, and even In 2005, 70 percent the sector was made up of most of the gold mining companies are working small operators with a production of less than 2,000 without the proper licenses. In 2005, the Ministry of cubic meters. The number of larger operators in Labor, Technological Development, and 2005 represents an increase since the 1990s, Environment reported that only 10 small-scale gold although there are no really large companies pres- mining concessions were legally registered, while ent. For the small operators, including the produc- the World Wide Fund for Nature (WWF) estimat- ers of minor wood products3 (94 people in 2005), ed that there were over 10,000 small-scale gold min- there is probably little difference between poverty ers in the interior. Brazilian garimpeiros make up and commercially driven activities. Table.3 gives an the majority (65 percent), followed by and maroons indication of the structure of the sector. (17 percent) from the interior (Healy 2005). Violations by small operators with production The miners use heavy equipment or powerful under 1,000 cubic meters per year and non-regis- hydraulic jets to remove the forest cover and over- tered (illegal) operators is often related to their burden to expose sediments where gold is found. Deforestation and soil movement cause significant 3. Minor wood products include small poles, shingles, stakes, erosion in the sloping landscapes of the gold mining and so forth. STATUS OF ILLEGAL LOGGING AND FOREST SECTOR LAW ENFORCEMENT TABLE 3 Illegal activities at the commercial level occur Production Level of Logging Enterprises in among the larger producers (multinationals and the Suriname (Cubic Meters) medium-size domestic companies) with concession operations. Common violations include: Roundwood production 1998 1999 2005 ■ Harvesting outside assigned concession area < 100 30 101 21 ■ Delayed payment of forest fees and royalties 101–500 51 75 21 ■ Harvesting of protected species 501–1,000 13 18 11 ■ Smuggling of timber across borders 1,001–2,000 25 10 25 ■ Felling unmarked trees and excessive harvesting 2,001–10,000 7 2 29 ■ Incorrect log measurement 10 > 10,000 2 1 — Total 128 207 107 Forestry production by tribal peoples Source: SBB statistics. The illegal activities of the tribal communities in the forest sector are often poverty related. The main driver behind the illegal activities is the lack of inability to meet the administrative and technical employment opportunities for people living in the requirements for sustainable timber production. interior. These areas are less developed, and have a Chain saw operators and operators of mobile and higher poverty rate than coastal areas. Even when portable mills are part of this group. For most of employed, workers from indigenous and maroon these enterprises, neither the workers nor the man- communities usually receive the lowest-paid jobs. agement have much education or understanding of Low wages and high unemployment (9.4 percent) the legal requirements of the Forest Management have pushed many to seek self-employment in the Act. More than 40 percent of these producers are informal sector. Low educational levels hinder nav- the descendants of the tribal populations in the hin- igation of the bureaucratic system and further limit terlands. Another substantial group (20 percent) in the legalization of these businesses. Many believe the timber production sector is comprised of pri- that they already have legal rights over the areas vate forestland owners (in most cases the land is in occupied and used for centuries, and that it is not collective ownership), who permit the timber to be necessary to formalize these rights and obtain offi- harvested from their forests. Illegal activities are cial documents. Overall, there is a generalized lack very much driven by poverty. Common violations of understanding of the legal requirements for for- include: est management and production. ■ Non-existent or void licenses Mobile, portable mill, and chain saw wood ■ Harvesting of protected species or undersized production trees in public forests ■ Lack of access to required management and har- A number of small-scale operators process logs in vesting plans the forest and produce sawn wood. They use both ■ Transport of timber or logs without tags or chain saws and mobile sawmills. In 2005, they other documentation reported the production of 7,400 cubic meters of ■ Harvesting outside assigned area, due to lack of sawn wood. Closed containers on flatbed trucks clear demarcations and vehicles designed for passengers are used to ■ Delayed or nonpayment of forest fees and royal- transport rough planks to secondary processors. If ties not detected by the authorities, this production ■ Harvesting in protected areas goes unrecorded. Chain saw operators are usually residents of the This type of logging takes place in communal forest-based communities. In the past, these com- forests, near tribal villages, and in privately owned munities practiced pit sawing, mostly for subsis- forestland. tence use. Now operators work individually or in L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R small family groups. In the 1990s, Guyanese opera- a total of 104 processing units, of which 50 were sta- tors introduced techniques for onsite log process- tionary sawmills. ing, with greater productivity and better-quality Development NGOs are encouraging the use of wood. The Guyanese operators are no longer visi- mobile mills and are providing training and fund- ble, but the techniques have remained. ing to interested communities. The job creation and Chain saw wood producers fell trees with larger income generation associated with mobile sawmills diameters and limit their selection to highly valu- make them a more profitable alternative for com- able species used by the furniture manufacturers. munities that otherwise might sell timber rights to Manual labor is used to transport the sawn timber outside entrepreneurs. to roads, where it is loaded for transport. These operators produce good quality wood, and cause BORDER AND TRADE ISSUES less environmental damage than mechanized log- 11 ging operations where improper skidding causes considerable damage to the remaining trees. Chain Exports accounted for 30,000 cubic meters (17 per- saw wood production is often seen as a temporary cent) of all timber production in 2005. The main activity when other income-generation activities are export item is round logs, followed by sawn timber. absent. The work is physically hard, production The largest buyer is China. Regional exports are volumes are low, and business skills are poor, which limited, with small quantities of sawn wood and contribute to poor economic returns. Chain saw plywood exported to French Guiana. No exports to operators work less than mobile mill operators. Guyana were registered in the period of 2002–05. Because of the limited scale of chain saw wood Table 4 provides more details on the products and production, it is not considered a major threat to destinations of wood exports. the forests. No specific policies have been formulat- Suriname borders Guyana in the west, French ed to deal with this issue, nor are there any concise Guiana in the east and Brazil in the south. The declarations concerning chain saw wood produc- boundaries with Guyana and French Guiana follow tion in the legislation. Onsite processing of timber rivers, which are semi-navigable for wood trans- is allowed under all types of timber harvesting portation. The border with Brazil is mountainous licenses. There are even specific provisions in the and has no road access. fee structure for onsite timber processing. The Only a small number of logs in eastern Suriname informal (illegal) character of the chain saw opera- are felled, and they are used for subsistence purpos- tors, as well as the mobile and portable mills opera- es or in the gold mines. There is no movement of tors, is an issue that concerns the authorities. logs on the river with French Guiana, but customs Reliable information concerning the number of officers report that Snakewood (Brosimum guianen- mobile and portable mills operating in Suriname, sis) is exported, probably for use in the craft indus- and the number of chain saw operators, is lacking. try in French Guiana. The picture of mobile mills is incomplete, since There is a great deal of log transport along the most units operating in the remote parts of the inte- Corantijn River between Suriname and Guyana. rior have not even been registered. A spokesman for Important production forests are found in the area the Association for Loggers (ABE) estimates that around the middle and upper stretches of the river about 300 mobile mills currently operate in in Suriname, and to a lesser extent in Guyana. A Suriname. The SBB reported that one mobile mill number of sawmills are located along the northern dealer sold about 80 sawmills last year. Other deal- Corantijn River in both countries. The area of the ers also sell this type of equipment (Matai 2004). interior at the Suriname border is scarcely populat- Some of the mobile mills are operated in fixed loca- ed, with only one small population center in tions, while others are repositioned as needed to Apoera, and two indigenous villages. Apoera houses supplement stationary sawmills. With an annual offices of the government administration, including production capacity per mobile mill of 200 cubic a guard post of the SBB and the police. However, meters, this sub-sector has the potential to produce they lack the proper means to patrol the river. at least 60,000 cubic meters of wood per year (ABE, Transport of logs on the river is complicated. personal information). In 2004, the SBB registered The river belongs to the territory of Suriname, but STATUS OF ILLEGAL LOGGING AND FOREST SECTOR LAW ENFORCEMENT TABLE 4 Export Volume of Wood per Region and Country in 2005 (Cubic Meters) Round Squarely hewn Land logs poles Snake wood Sawn wood Total The Caribbean area 1 425 426 Cuba 194 194 Dutch Antilles 163 163 St.Vincent 1 59 60 Trinidad and Tobago 9 9 12 South America 36 36 French Guiana 36 36 North & Central America 92 134 8 899 1,133 United States 92 134 8 899 1,133 Canada 0.02 0.02 Europe 865 2,104 21 1,163 4,153 Belgium 41 90 131 Germany 205 76 10 291 France 28 21 49 United Kingdom 20 20 Netherlands 591 2,028 971 3,590 Turkey 0.2 32 32.2 Switzerland 40 40 Asia 6,228 54 36 2,179 8,497 China 4,736 54 35 2,057 6,882 Hong Kong (China) 87 87 Japan 17 17 United Arab Emirates 690 105 795 Vietnam 715 715 Total 7,185 2,293 65 4,702 14,245 Source: SBB. the Guyanese also are free to travel along it. All log facilitate illegal logging, which is done by loggers transport on the river needs to be covered by the from both countries. The wood is harvested in the usual transport bill or Forest Transportation permit Surinamese forests and transported to sawmills issued by the SBB. All timber found on the river is along the riverbanks in Guyana. Logs are also trans- assumed to be of Surinamese origin, unless the ported to ocean vessels for shipment overseas. transporter can produce a harvesting permit issued Experts say that a substantial amount of timber by the Guyanese forest authority. The Guyanese per- crosses the river into Guyana. They believe that the mits are countersigned by the SBB and considered 17 sawmills on the Corantijn River bank could valid for further transport on the Corantijn River. process at least 50,000 cubic meters annually (SBB, Economic incentives and the weak presence of personal communication). There is no information law enforcement institutions (police, customs, and about timber entering Suriname from Guyana in forest guards) in these remote areas of the interior this area. The SBB has tried to discuss timber smug- L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R gling with Guyanese officials, but to date no follow- formal land rights in so-called “economic zones� to up actions have been taken. the tribal communities. To date, no structured dia- logue has been held with the communities on the issue of land rights. IMPACT ON GOVERNMENT FINANCES When discussing the issue of forest use and log- ging by the tribal populations, a distinction can be The government revenues from the forest sector made between communities living in the accessible include an area fee of less than US$0.05 per hectare, areas of the hinterland and those in the far interior. paid for the logging rights in concessions, and a vol- In the far interior, logging is done for subsistence, ume fee of US$5 to $6 per cubic meter for commer- and regulations for the felling of trees are adminis- cially produced timber on state lands. Other fees are tered by the traditional authorities.(community charged for the purchase of log labels, waybills, and leaders. The national government does not mark 13 other administrative procedures. The SBB estimates the boundaries of forestland or issue use rights. that undetected and unrecorded timber production Tribes and individual communities use their own represents an additional 20 percent of the total vol- traditional land divisions. ume of the registered production in round logs (see In the more accessible part of the interior, the section 2, “Volume of Illegal Logging and Other situation is different. Communities received com- Illegal Activities�). If accurate, the fees on that tim- munal rights over forests (“houtkap vergunning,� ber would come to US$210,000. or hkv’s) with the objective of providing opportu- With the established fee structure, total govern- nities for subsistence forest production and land for ment revenues for 2005 should have reached US $1 agricultural development under the 1947 Timber million for the volume cut, and a minimum of US Act. The 1992 Forest Management Act explicitly $30,000 in area fees. The actual income in 2005 for adds commercial logging as an appropriate use for volume fees totaled US$800,000 and the area fees communal lands. were US$43,000. The earlier hkv’s were issued personally to the village chiefs. In many cases, control of the commu- nal rights remains with the individual licensee, IMPACT ON INDIGENOUS while the villagers get an inequitable share of the COMMUNITIES,THE RURAL POOR, benefits of their community forests (National AND THE ENVIRONMENT Forest Policy 2003). This is said to be more frequent in maroon societies. The indigenous organizations Impact of illegal logging on the tribal claim that they have raised awareness with their tra- populations ditional authorities concerning the need for com- munal forests to provide benefits for the whole Land rights and forest use issues: The indigenous community, notwithstanding the fact that the communities of Suriname belong to maroon and license is issued in the name of the village chief indigenous tribes living in the hinterland of the (Vreedzaam, personal communication). country. Land rights remain the most important Village chiefs have been approached by private unresolved issue between them and the govern- logging companies offering to purchase harvesting ment. The national government has been criti- rights in the communal forest. They promise in cized for not granting formal rights to the tribal return a (small) fee and other benefits for the com- groups for the lands they occupy and have used for munity. This situation became more prevalent in centuries. In accordance with the Constitution of the early 1990s, when it was more difficult for log- the Republic of Suriname (1987), all forests, gers to obtain concession rights under the regula- except for those on privately owned land, belong tions of the FMA. Between 20 and 40 percent of to the state. commercial wood production now comes from In 1992, after the period of social unrest and these community forests. Approximately 250,000 jungle war in the interior, a peace accord was nego- hectares of forest are logged commercially each tiated and the national government agreed to issue year. (National Forest Policy 2003). In 2005, about STATUS OF ILLEGAL LOGGING AND FOREST SECTOR LAW ENFORCEMENT 26 percent of commercial production came from looking for timber4 (Vreedzaam, personal com- communal forests. munication). Several communities have seen their forests 4. Government regulations limit road transport of severely degraded because of these contracts. This is logs in the rainy season. A generalized complaint a threat to their economic survival and might force is that truckers do not obey these regulations. segments of the population to migrate and live in Road damage makes the villages inaccessible and poorer conditions elsewhere in Suriname. In addi- hampers school and medical transportation. On tion to multinational firms, local entrepreneurs are several occasions, people from tribal communi- now using small-scale equipment (chain saws and ties erected roadblocks to stop logging trucks mobile sawmills) to commercially log communal (Playfair 2006). forests. These activities have contributed to the loss of authority of the village chiefs’ violation of vil- 14 Impact on the environment lager’s (Country Report Chainsaw milling study, 2006). The impact of illegal logging on the environment in The indigenous people’s generalized perception Suriname is greatest where sensitive protected areas is that violations include any activities carried out are illegally logged and when high-value tree species by strangers on indigenous people’s land without are selectively harvested. Both occur with little or prior government notification. Indigenous people no consideration of species management or ecosys- should be considered as protectors of the natural tem protection. environment and have the right to raise their voic- Illegal harvesting of mangrove trees for poles es when they are unjustly treated (Vreedzaam, per- and fuelwood by the fishery sector threatens the sta- sonal communication). The communities in the far bility of the mangrove ecosystem in some locations, interior are not affected by illegal forest activities jeopardizing coastal protection. This is especially because no commercial logging is taking place in the case near concentrations of fishermen in the their areas. They are, however, affected by other coastal districts. illegal activities, such as gold mining. Species important for either the handicraft industry or the furniture sector tend to be targeted by small producers with mobile processing equip- Conflicts due to forestland intrusion ment. Over-harvesting may endanger the survival Even though the issue of land rights is still unre- of the species. solved, the government continues to grant licenses The species Cedrela odorata is a native tree found to non-tribal people and companies on forestlands in the coastal areas in more or less concentrated claimed by the communities. This leads to conflicts patches, as well as in the interior. The wood is pre- with both the licensee and the government. ferred by handicraft producers and furniture mak- ers because of its durability and workability. The 1. Community members claim that the issuing of chairperson of the handicraft producer’s organiza- rights to logging companies limits their access to tion indicated that there is a serious shortage of their traditional forest resources and may even cedrela. Craft producers expend great efforts to find lead to deforestation. People have been denied the wood and purchase it in small quantities from access to forest roads within concessions and whomever they can. It is likely that most of this pro- prevented from collecting non-timber forest duction goes unrecorded by the SBB. This type of products in traditional sites (Playfair 2006; Tjon harvesting may eventually cause cedrela to com- 2003). pletely disappear from the coastal area. 2. Villagers complain about the fact that tradition- ally protected forest resources have been spoiled 4. After abandoning their after long political debate to by the arrival of logging and mining companies. obtained concessions in the western part of the country, Musa approached the leaders of indigenous villages and 3. The sense of insecurity was increased for the asked them to supply the company with logs. They provided entire population when strangers working for the villagers with chain saws and paid them for every log of N.V. MUSA Indo-Surinam appeared in the area the desired species and dimensions delivered. L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R Watrakan (Cordia) is another native species directly to the furniture and construction sectors, much sought after by the furniture sector. rather than to the established sawmills. Watrakan is found in low densities in heteroge- The sawmill industry in Nickerie, on the border neous forests in the interior. It became popular over with Guyana, complained regularly about the inad- the last 10 years, but now is very difficult to find in equate supply of round logs. Not only were conces- more accessible areas. sion contracts difficult to renew, but the supply of logs was probably further reduced because of smug- gling to Guyana. IMPACT ON THE FOREST INDUSTRY The SBB frequently makes inspection visits to registered sawmills to verify the status of logs. The Preserving an adequate supply of raw material to lack of controls for secondary processors makes it the established (registered) sawmills is an impor- easy for illegally produced timber to enter the chain 15 tant issue related to illegal logging. Not all sawmills of custody. have access to timber concessions or sufficient The processing of round logs by small, independ- capacity to meet the demand for raw material from ent loggers in the forest, or by secondary processors, their own logging units. As a result, they purchase a has an adverse effect on the established industry, considerable amount of timber from independent which experiences a drop in turnover because of the loggers. Historically, overcapacity has been a prob- decrease in wood sales. As a result, the industry now lem in the sawmill industry. In 2000, a total of 74 lacks funds for reinvestment and operational main- sawmills and one plywood factory were identified, tenance. (ABE, personal communication) with an estimated total annual log consumption of A second issue related to illegal logging and the approximately 110,000 cubic meters. (Asraf, Matai, industry is the price differential between illegally and Horsten 2000). By 2003, the total installed and legally produced timber. Production of sawn sawmilling capacity was estimated at approximately timber in the forests tends to be more cost-effective 600,000 cubic meters per year. (National Forest than that achieved by established sawmills. The Policy 2003). This figure includes the existing chain of custody to the consumer is shorter. The capacity in the mobile and portable mills. Most fees and other payments to the state are important sawmills are old and inefficient, although over the costs for legal producers that others don’t pay. past few years some new investments have been Informal or illegally produced sawn wood is often made. The capacity of the mobile mills is estimated transported directly from the producer to the sec- to be at least 120,000 cubic meters of round logs. ondary industry. Transportation costs are less, and This estimate is based on the information given by the overhead costs for these small businesses are a spokesman of the ABE (see section 2, “Types of almost nil. This represents unfair competition for Illegal Logging�). the law-abiding sawmills. The industry complains about the inadequate There is no exact information available on price supply of raw material. A few years ago, the blame differentials, but one broker indicates that the price was placed on increased log exports because of of sawn wood sold by sawmills is about 35 percent higher international prices. Currently, much of the higher than prices offered by mobile mill operators. production by independent loggers is sawn into The illegally produced timber also benefits the boards by either the loggers or log purchasers, and transportation sector in the interior by providing it commercialized in the timber markets or sold with a relatively stable income opportunity. STATUS OF ILLEGAL LOGGING AND FOREST SECTOR LAW ENFORCEMENT CHAPTER THREE Forest Sector Institutional Analysis 17 POLICY FRAMEWORK The government needs to execute a number of follow-up actions to implement the forest policy. Major policies related to illegal activities These involve: The national policy for forest utilization was laid 1. The preparation a strategic action plan to pro- down in the Forest Management Act of 1992. The vide the government with details on the neces- act outlined the parameters for the sustainable and sary actions and measures to be taken. The proj- rational use of forest resources, and includes regu- ect document prepared for the formulation of lations for forest production. From 1997–2004, a the strategic action plan restates that illegal log- number of policy documents on forest manage- ging and the uncontrolled collection of plants ment and utilization were prepared in the frame- and animals for subsistence and commercial work of an FAO advisory assistance project. None markets damage the value of the forest for the of these documents addressed the issue of illegal forest communities, diminish biodiversity, and logging. are harmful to the local economy. No further In the first half of 2003, the Ministry of Natural mention was made regarding these issues. Resources prepared the first coherent national for- est policy document for the country. The objective 2. The 2004 framework of the Development of the policy is to enhance the contribution of the Cooperation Program of the Netherlands with forests to the national economy and the welfare of Suriname includes a Policy and Action Program the current and future generations, taking into for Sustainable Management of the Non Urban account the preservation of biodiversity. The issue Environment Sector (NUES). The only illegal of illegal logging is mentioned under the thematic activities mentioned are for the fishery sector. goal “land-use planning.� The policy states that ille- This document does state the need to increase gal logging undermines efforts toward sustainable the capacity for sustainable forest management forest management and is harmful to bona fide and greater efficiency in forest exploitation. As a companies and the national economy (National follow-up activity, a project for establishing the Forest Policy 2003). The strategic goal recommend- new forest management authority (BOSNAS) ed is the reduction of illegal timber harvesting and was prepared, and has been submitted for fund- theft of plants and animals. ing by the government of the Netherlands. The project for establishing BOSNAS is also part of 2. Placing of numbered tags on every log harvested the ITTO program prepared by the Ministry of that identify specific producers and individual Spatial Planning, Land, and Forest Management, harvesting compartments. which is designed to increase the contribution of 3. Documentation of every log shipment, includ- the sector to the national economy. ing the tag numbers and final destination. The FMA further specifies that a license is need- Drivers behind illegal activities in the forest ed to operate any log processing plant, and that sector every carrier of wood products or every person Illegal log production is encouraged by the remote- engaged in log processing is obliged to supply sta- ness of the forest area and the inadequate govern- tistical data to the SBB whenever requested. mental presence. Concessions and other areas 18 where logging has been approved are not demarcat- Political will to address illegal activities and ed on the ground. The government does little to stakeholders participation control unauthorized access to public forests and their resources. Despite its extensive character, forestry is not high Only the larger companies take any actions to on the political agenda. Government efforts focus control the access to their forests. The large forest on increasing the economic contribution that tracts and access roads are usually uninhabited. renewable resources make to the national economy, Only the major settlements in the interior have and environmental protection (ITTO preproject, police stations. Given the vast extent of the forest 2006). Although illegal logging is not regarded to be area and the very limited capacity of the SBB, they a major issue, addressing the issue could be impor- cannot effectively monitor the full forest area (see tant for the country’s image. section 3, “Capacity at the SBB for Monitoring and The growing interest of multinationals in the Control�). country, and the demand for logs for the Asian A second driver for illegal logging is the strong market, might stimulate an increase in illegally pro- demand for cheap timber from secondary proces- duced timber. It is in the interest of all groups in the sors. The numerous timber markets, furniture pro- logging sector, namely the established industry, the ducers, and construction companies directly pur- small producers, the tribal communities, and the chase wood to satisfy the needs of their clients. The state, to deal with this issue. The SBB or BOSNAS cheaper prices in the informal sector are very attrac- needs to take the lead and work with the other tive. The weak information database on forest pro- stakeholders to clearly define illegal logging and ducers and consumers allows products made with draft additional legislation as needed. This process illegally produced wood to easily enter the domestic should consider the situation of the small entrepre- market. neurs in the tribal communities who are earning a The policy of the government is to strengthen living in the gray area of informal production and the law enforcement institutions in the country, in illegal activities. particular in the interior. The lack of available fund- Unresolved land rights issues also require con- ing negates effective implementation of the policy. sideration. At present, there are no forums for dis- cussing these issues. The framework for forest poli- cy formulation and monitoring identifies the need Law enforcement mechanisms for for periodic consultation with stakeholders to reach controlling illegal logging consensus regarding specific issues on the elabora- The FMA provides a comprehensive regulatory tion and implementation of the forest policy framework for control of illegal timber production. (National Forest Policy 2003). The major stake- It is described in three articles of the act (articles 32, holders in this process include: various segments of 44, and 45; SB 1992, no. 80) and consists of: the forest industry, including primary and the sec- ondary processors, tribal organizations, govern- 1. The registration of every log harvested with a ment institutions for forest management and unique number and identifying characteristics. regional development, the police and customs offi- L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R cials. A stakeholder list with contact information ■ Transportation of wood without the appropriate appears in annex 1. waybill ■ Unauthorized felling of trees or gathering of non-timber forest products LEGAL FRAMEWORK For the first four offenses, the fine is five times Legislation the amount of the fees or taxes due (US$25–30). The fine for the last offense is set at three times the Suriname last updated its forest legislation in 1992, fees or taxes due (US$15–18). when the Timber Act of 1948 was replaced by the FMA. Since then, there have been ongoing discus- Incentives and disincentives to legalize sions concerning needed adjustments. The SBB has forestry operations 19 submitted a proposal to the government for amending the act, adding a number of articles that No specific disincentives or incentives to legalize would enable the establishment and functioning of forestry operations have been identified. However, BOSNAS as the country’s forest management insti- it is felt that the administrative or operational reso- tution. lution of violations—including the payment of Laws aimed at preventing illegal forest activities fine—is becoming part of the normal production are: process. Fines for minor violations are not regarded as punishment, but as alternative methods for com- 1. Forest Management Act plying with legal requirements. An example is “tol- 2. Criminal Code erated harvest� in concessions with expired licenses, 3. Economic Decree or outside of specified areas of the state forest. 4. Nature Conservation Act These are situations in which the law and actual policy differ, and enforcement becomes flexible. Penalties imposed on violators are listed for each Excessive or unrealistic requirements and standards law: are also subject to flexible enforcement. A number of examples of flexible enforcement within the sys- ■ Forest Management Act tem are given below. • Warning to first-time offender • License revocation ■ In expired concessions, logging activities of the • Confiscation of logs former license holders are in some cases toler- • Public sale of confiscated logs ated while the person is given the chance to • Prohibition of the export of illegally pro- renew his license. In such circumstances, along duced timber with the normal fee, a “fine� of 200 percent is ■ Criminal Code charged. • Fines ■ On the islands in the hydro-energy lake and • Imprisonment around the lake, loggers from neighboring com- ■ Economic Decree munities are still allowed to harvest trees. They • Fines have never applied for or been given a license for • Imprisonment their activities. They are required to pay twice the normal fees for the logs harvested. At present, five fixed fines are assigned to viola- ■ Harvesting of the natural rubber-producing tions, all of which are based on the fees or taxes due. species (Manilkara bidentata) is forbidden. The They apply to the following violations: SBB is aware of the fact that natural rubber pro- duction is not very feasible and that there is a big ■ Felling of undersized trees demand for the species as a timber tree. In a ■ Felling of protected tree species number of cases, loggers have harvested the trees ■ Fraudulent documentation of tagged timber and paid the extra fees to get hold of this highly appreciated timber tree. FOREST SECTOR INSTITUTIONAL ANALYSIS ■ The species Vouaca americana is not only valu- buyers often include the offending company and able for furniture making, but is also used wide- other companies operating in the same areas. ly for the production of utility poles. Trees cut for poles often don’t have the minimum diame- Procedures for logging operations ter of 35 centimeters. No fines are imposed for this type of violation. Table 5 shows the required activities and proce- ■ To promote sustainable production under the dures for logging operations and estimated costs. FMA, logging is only allowed with approved management plans. This is also mentioned in Shortcomings in the legal system regarding the terms in the concession license, but very few illegal forestry activities operators have approved plans (Playfair 2006). Since the producers neither have the knowledge The capacity of the judicial system to deal with 20 nor the means to prepare a management plan, forestry violations is very limited, due to the gener- the SBB has introduced the concept of extensive al shortage of judges and prosecutors. Because of management concessions and is gradually intro- this situation, criminal and other legal cases can ducing proper management practices. take a very long time before they reach the court. The judicial system is providing alternatives to deal with the less serious cases outside the court. Within Procedures in timber sales the Council for Public Prosecution a special officer Although regulations for timber sales in public is assigned to deal with forestry-related crimes. forests have been prepared, they have not been After consultation with this public prosecutor, implemented. The main constraint has been the many offenses are handled administratively by the difficulty of developing procedures that will allow SBB itself. While this is more efficient, it does send transparency and equitable opportunities for all a message to potential offenders that harsh punish- potential bidders. The FAO recommended addi- ment is unlikely. tional guidelines as a supplement to the issuance of Current penalties are not a serious deterrent to concessions (Mitchell 1998). violations. The fines are probably set too low, and The government sales of seized timber usually violators suffer no other negative consequences for involve small volumes. Sales are advertised in local their actions. In some instances, illegally produced newspapers and companies are invited to bid. This wood is seized, but violators can pay the fines and system seems to be operating adequately. Potential reclaim the timber. TABLE 5 Logging Activities Administrative Estimated cost Activity costs for compliance Pre-logging License Application US$3 • Preparation of logging plan — US$5,000 Preparatory • Delineation of concession boundaries logging activities • Execution of harvesting inventory — — • Preparation of harvesting plan • Marking of trees to be felled • Filling in cutting register < US$1 Logging • Marking stumps — per form • Tagging logs L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R With the exception of the five specific cases for the SBB ran out, this institution again became where the penalty is fixed, all other violations of the dependent on the central government and its budg- law or the logging prescriptions are dealt with on an etary procedures. This greatly delayed operations ad hoc basis. It is left to the judgment of the forest and hindered the execution of tasks. guard to decide what action to take in a specific It has been suggested that the SBB should be case. This is particularly difficult because the SBB is self-funding in order to exercise its responsibilities still in the process of bringing the timber sector effectively, and with a minimum of bureaucracy under the regimen of sustainable production. and delay. A management fee paid by forest opera- tors would fund the monitoring and control activi- ties of the SBB and BOSNAS, once it is established. Institutional preconditions for improving legal compliance Monitoring and control system 21 The institutions responsible for law enforcement must have legal authority to act, and operational Proper law enforcement requires reliable informa- capacity in terms of personnel, material, and equip- tion systems to determine the legal status of round- ment. Current constraints for industry compliance wood and timber. The SBB has put a great deal of with the law also need to be addressed. effort into the development of a tracking system to Overall, government administration in monitor the flow of wood along the production Suriname is very centralized. All government agen- chain. The key is the assignment of a unique num- cies and other relevant offices for doing business are ber to each log, which is linked to a cutting register headquartered in Paramaribo. Only a few agencies for each harvesting compartment in the concession have permanent installations in the other urban area, and waybills during the transport. The systems centers of the coastal area. Decentralization of the used by the SBB include the LOGPRO timber pro- relevant departments and empowerment of SBB duction database and a geographic information sys- field stations to deal with administrative procedures tem (GIS) database for the forestry areas. would remove one barrier for producer compli- ance. This is particularly true for legal operation of Agencies in forest law enforcement concessions in the interior. The enforcement capacity in the forest sector is Relevant agencies in forest law enforcement are: weak. The two main institutions for law enforce- ment, the SBB and the police, both have insufficient ■ The Forest Service (LBB). The LBB is the legal manpower and logistical support to execute control authority in charge of forest management in the in the forest areas. Effectiveness could be improved broadest sense of the word, including nature through better cooperation, e.g. regular meetings to conservation exchange information, and implementation of joint ■ The Nature Conservation Division of LBB is the field operations. designated CITES authority in Suriname. It is Lead field officers require adequate training and responsible for issuing export permits for all motivation. Training and awareness on the issue of CITES species sustainable forest management is needed to make ■ The Foundation for Forest Management and both forest guards and police officers better aware Production Control (SBB) works under the of the consequences of illegal activities and moti- mandate of the LBB and is involved in the man- vate them to take proper action. agement of the production forests regarding the Alternative means for the funding of control and supervision and control of logging. monitoring activities for sustainable forest manage- ■ The Council of Public Prosecution of the ment has been widely discussed. In 1994, a process Ministry of Justice. The public prosecutor is led by the FAO project was set in motion to make responsible for the prosecution of violations of the forest management authority independent from the law, including the Forest Management Act. the direct political and financial control of the cen- ■ The National Police Force has the authority to tral government. When the initial project funding take action on violations of any law. FOREST SECTOR INSTITUTIONAL ANALYSIS Capacity at the SBB for monitoring and an extraordinary police officer, a log scaler, and a control tree spotter. The roadside stations are manned around the The control and monitoring system of the SBB is clock. They exercise control over wood transport, comprised of two main sections: and truckers are obliged to stop at roadside field stations and have their waybills checked by the for- 1. Production Planning (PDM) est guards. 2. Production Control (PCM) Sawmills are the final control point for timber entering the domestic market. The main objectives A total of 55 people are engaged in the monitor- are to identify illegally produced timber and to ing, control, and enforcement activities of these sec- make sure that the required fees are paid on all logs tions. Production Control has a staff of 50, and the entering the market. The sawmill control unit 22 remaining five people work in Production makes regular visits to sawmills to verify the origin Planning. of the logs. Untagged timber is considered illegal The Production Planning Department monitors and is confiscated. preproduction activities, including: The sawmill control unit seeks to visit each sawmill at least twice a week. With about 50 opera- ■ Assessment of long-term exploitation plans tional sawmills, this implies 100 visits per week. (outline management plan) and the harvesting Given current staffing, this gives the inspectors plan barely enough time to check all incoming logs. ■ Field checks and assistance in the demarcation Inspection visits have been expanded to include two of concessions and the layout of production or three retailers of minor wood products. Other compartments and roads consumers of logs or roughly processed wood are ■ Field checks of forest inventories not yet included in the inspection rotation. ■ Field checks of the selection and marking of When advised of illegal activity, the control trees for felling teams respond as possible. The sawmill control unit is also in charge of controlling the mobile mills in Law enforcement is the responsibility of 50 for- the forest areas. Forest guards usually are aware of est guards in the Production Control Department. the location of the mobile mills and their move- Thirteen are authorized as police officers to take ments. Currently no regular inspection visits are legal action under the regulations of the Code of made to these sites. Criminal Procedure. The Production Control Department has eight Monitoring and control activities in timber stations, three of which are roadside check stations, production. and the other five are used as base stations for field operations. Each field station is manned by two to Control and monitoring is inadequate due to the three forest guards at a time. The department also institutional weaknesses of the SBB. There is a has sawmill and export control units. The sawmill shortage of forest guards, and SBB vehicles are not control unit consists of four to six persons, and the in good operating condition. The SBB has started a export control unit consists of four persons, of new training program and expects to graduate 30 whom three are timber inspectors. new forest guards. This will bring the total number From the base stations, the forest guards make of forest guards available for monitoring and con- regular visits to the production areas in their terri- trol to about 75. In the next cycle, another 30 peo- tory. Their main function is to review and verify ple will be trained. felling records. This is done at the request of the A major problem for enforcement and monitor- logger and through random visits. Stumpage con- ing is the large production area and the dispersion trol is done in the forest, and registries and tags are of operational sites. This makes field monitoring checked at the forest landings. The base station and control of all production activities rather team includes a forest guard with the authority of unmanageable and expensive. L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R TABLE 6 Monitoring and Control Activities Activity Indicator Responsibility Pre-logging Application for license Assessment of application MIN of RGB/SBB Preparation of logging plan Assessment of plans PDM Delineation of concession Monitoring positioning of PDM/GIS office boundaries boundaries Preparatory logging activities Execution of harvesting inventory Monitoring execution and results PDM Preparation of harvesting plan Assessment of plans PDM 23 Marking of trees to be felled Monitoring PDM Filling in cutting register Control of cutting register Marking stumps Stumpage control PCM/Base station forest guards Tagging logs Verification of tags Logging Control of waybills PCM/Roadside station forest Transport of logs with waybill Monitoring quantity guards Verification of tags Sawmill control Processing Sawmilling PCM/Sawmill unit Verification of origin of wood Verification of origin of wood Export Grading PCM/Wood inspectors; Customs Quality and quantity control Monitoring of other forest production taking formal legal action. Nonetheless, a number activities of violations of the Forest Management Act are also SBB monitoring activities are focused on produc- covered under the regulations of the Decree on tion activities on public forest areas (e.g. conces- Economic Crimes, and therefore considered more sions and areas under incidental cutting licenses) serious offenses. Since mid-2005, the SBB has and commercial timber production in communal referred these offenses to the judiciary. forests. Production of wood on private land and From July to December 2005, about 150 offens- subsistence production in communal forests is not es were reported In the first eight months of 2006, monitored by the SBB, except when timber from an additional 164 cases were reported. The official these areas is transported off site. policy is to settle less serious offenses and incidental Illegally harvested logs from public forestland what is meant by incidental violations by first-time are detected through roadside inspections and visits offenders administratively within the SBB. Only 15 to sawmills. The production of minor wood prod- to 20 percent of the reported cases were brought to ucts is also monitored as possible, and the quanti- the attention of the public prosecutor. Normally, ties of the different products transported are regis- the Council for the Prosecution of Criminal tered. The production of non-timber forest Offenses sends its cases to cantonal judges, or settles products, which is mostly done on an informal them by assessing pre-established fines. Very few basis, is not monitored. violators of the FMA are dealt with by the cantonal judges. In 2005, only two offenders were convicted in these courts. Dealing with violations The probability of detecting illegal activities In the past, violations were reported to the general depends on the type of activity, and the product and director of the SBB. All cases were settled without quantity involved. The detection rate of illegally FOREST SECTOR INSTITUTIONAL ANALYSIS obtained round logs is high, according to the SBB. tion may occur when forest guards ignore certain With the log tracking system operational, every violations. legally produced log that appears at landings, on the In earlier years, corruption did play a role in the road, or at processing sites, can be traced back to its allocation of timber rights. Both political favoritism origin. Untagged logs are considered illegal. and bribery by multinational brokers threatened Illegal sawn wood transported in closed contain- the equitable issuance of concessions and licenses. er trucks is more likely to go undetected. However, Political favoritism was a problem for several the forest guards with police authority can inspect decades when political friends and sponsors of gov- suspicious freight in private and public vehicles. ernmental parties were given concessions without Criminal offenses are settled within two weeks of meeting the legal requirements. Cases of bribery detection. This is the result of assigning a special became known after 1994, when several multina- officer dealing with forest sector violations in the tionals from Southeast Asia came to Suriname and 24 Council for Prosecution requested large tracts of forests from the govern- ment. To get access to the political decision makers, bribes were offered to civil servants in relevant The issue of corruption posts. The management of the SBB does not believe that a In the past few years, corruption has decreased culture of corruption exists within the organization. noticeably. This is due in part to the increased Although the salaries of the forest guards are not transparency of the procedures for obtaining licens- high (US$300 per month including allowances) the es and concessions. Even though this situation no log tracking system is a strong deterrent to corrup- longer occurs, large areas of forest remain in the tion. Discrepancies in the registered volumes at the control of nonproductive companies. As a result, checkpoints can be easily detected (SBB, personal there are fewer areas available to bona fide loggers, communication). Given the likelihood of detection, and illegal harvesting in inactive concessions and the private sector appears unwilling to pay for the unassigned public forestland is more frequent than extra costs involved with corruption. Petty corrup- it would otherwise be. L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R CHAPTER FOUR Underlying Causes of Illegal Activities 25 SOCIOECONOMIC ROOT CAUSES OF The opportunities for these individuals to obtain ILLEGAL ACTIVITIES IN FORESTRY timber-cutting rights are currently limited.1 In addition, law enforcement officers and forest The socioeconomic situation of forest guards are not trained to deal with tribal people, producers and lack sufficient time and skills to settle matters satisfactorily for all stakeholders. Small entrepreneurs, with an annual roundwood production of less than 2,000 cubic meters, account The issue of good governance for more than 70 percent of all logging operations in Suriname. Violations by these producers are There is a general lack of good governance in often attributed to their inability to follow adminis- Suriname. The severe economic crisis of the past trative procedures or fulfill the technical require- few decades continues to limit the effectiveness of ments for sustainable timber production. Both governmental institutions, and Surinamese society workers and management alike have little or no for- in general. According to the Index of Economic mal education and lack awareness of the require- Freedom indicates that Suriname has an overabun- ments for sustainable forest management or under- dance of governmental controls in pricing, licens- standing of the legal regulations. This is also true for ing, and other areas. This partially applies to the mid-size companies, and to a certain extent for the forest sector. Illegal activities in both commercial multinational (Asian) companies. and subsistence production are often related to the The main cause of illegal activity is the high bureaucratic, time-consuming administrative pro- poverty rate, which is especially severe for tribal cedures necessary for obtaining logging licenses, peoples in the interior. The lack of alternative and to comply with the requirements of the moni- employment opportunities for workers from toring and control system. The forest sector com- indigenous and maroon communities has pushed plains that the SBB’s production control system many to become subemployed in the informal sec- actually hinders efficient logging operations. tor. They make up a group of local entrepreneurs who use chain saws or mobile sawmills and work in 1. In the past, every district commissioner had land at his dis- posal, which he could allot for short periods to small pro- both the communal and public forests. ducers. The industry also argues that the SBB, under the significant disincentive for the industry. Sometimes authority of the Suriname Forest Service, lacks a it appears that the larger operators consider the legal mandate for executing control over forest pro- payment of these penalties a part of the cost of duction, and it therefore can be said that the state is doing business. also involved in illegal activities. Poor governance and the acceptance of illegality KEY ISSUES WITHIN THE GOVERNMENT in the interior are also seen as the results of the past AFFECTING ILLEGAL LOGGING internal unrest in the country (1986–92). The con- flict arose between an armed group of maroons and the national army. It eventually spread across the One general cause for the poor compliance is the country and involved all the maroon and indige- lack of sufficient capacity in the judicial system. nous people’s tribes. Since the conclusion of fight- With the control system based on log tracking set 26 ing, the situation of the people in the interior has up by the SBB, it should be possible to detect the failed to improve. There are still tensions under- origin of every log encountered at whatever stage in neath the surface, and the national government is the production, transport, and processing cycle. blamed for not granting formal rights to the tribal However, the system can only function properly if populations for the lands they occupy and have all production sites are identified and all destina- used for centuries. tions for timber are monitored. Control of timber transport is almost complete- ly limited to the more detectable log shipments. ECONOMIC INCENTIVES AND Smaller-dimension wood products, such as sawn DISINCENTIVES TO COMPLY WITH wood, can pass by the control stations without EXISTING LAWS detection by forest guards. The SBB does not have the manpower and infrastructure in place to ade- A difference in production costs usually exists quately control forest production and extend the between illegally and legally produced timber. The monitoring further. The poor financial status of the cost of compliance with the Forest Management SBB is a principal cause of its institutional weak- Act includes administrative costs for monitoring by ness. The SBB currently operates with government the SBB, fees paid to the state, and extra actions subsidies, rather than the management fees fore- required for sustainable production. In a situation seen when the SBB was established in 1998. where the timber market is open to both illegally Improved cooperation between police and the and legally produced wood, it is understandable SBB would promote more effective control. The that these costs can be considered an optional bur- implementation of enforcement activities is some- den for producers. The registered saw mills have what contradictory. Policies and management sys- frequent control visits by the SBB, and supply tems for sustainable timber production are still themselves largely from legal sources, but there is evolving, and in many instances, no clear-cut rules virtually no monitoring of the furniture sector, the apply. The policy of “toleration� of infractions by independent wood markets, and the construction “first-time� offenders may send the wrong message sector. Small producers converting round logs into to loggers. The same issue applies to administra- sawn wood with either chain saws or mobile mills tively settled cases in which the fines are low and the deliver sawn wood directly to these secondary confiscated wood is returned to the loggers once the industries and can commercialize their production fines are paid. for about 35 percent less than the sawmills (ABE). Another aspect of tolerance is illustrated by the A disincentive for taking part in illegal activities fact that 30 percent of the concessions are not is the possible loss of the wood and the cost of fines. active, regardless of the law that stipulates that such The highest penalty is confiscation of the wood and concessions should be withdrawn. The authorities payment of a fine of five times the normal fees. It is are sending out mixed messages that don’t help doubtful that the penalties as set are considered a move the sector toward greater legality. L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R CHAPTER FIVE Knowledge Management 27 NATIONAL FOREST DATABASE Statistics, which uses the Ascicuda system devel- oped by customs officials. Raw data on exports is The government is criticized for not having ade- provided by the SBB. The concession database quate data available on the forest sector. This is seen developed by the SBB uses a GIS and links a forest as one of the causes for poor land-use planning and land-use map with actual log flow. The information concession management (ITTO 2006). Suriname is regularly updated with information from the lacks a proper forest resource assessment, and the other land management departments like the Land value of the total timber stock is not known. Management Service and the Institute for Furthermore, no information on potential sources Management of the Geographical Land Information of financing forest information system is available System (GLIS). (ITTO 2003). Compliance with legal and regulatory standards Improved management of a forestry database is monitored by the SBB, and includes the type and and GIS will lead to better planning at the policy number of violations, and the persons and compa- and operational levels. The 2003 National Forest nies involved. The Office of the Public Prosecutors Policy recommends establishing a central informa- maintains a separate database on the offenses tion system for data storage and processing of land brought to this office. and land tenure (cadastre). The business communi- ty would gain from having such a database and CAPACITY FOR MAPPING AND information at its disposal. Another ITTO recom- DEMARCATION OF FORESTLANDS mendation calls on the government to increase transparency concerning the availability and quality of concessions, as well as the selection and granting The relevant government institutions have the basic process. More information is needed about current skills to use GIS and GPS technology for mapping stocking as a basis for sustainable forest manage- and demarcation of land. The SBB has played a sig- ment and sound concession policy (ITTO 2003). nificant role in exploring the possibilities of using LOGPRO is the SBB’s system for the monitoring this technology in Suriname. However, the existing of log production and flow. It is a computerized capacity of GIS and GPS technology is insufficient system showing the log origin, volume, and desti- to fulfill in the needs of the sector. (WWF 2005). nation. The database on wood imports and exports A number of SBB forest guards are trained in the is maintained by the General Bureau for the use of GPS equipment and other measuring instru- ments. They use these skills during their field The SBB’s GIS unit produces maps of specific inspections for production control, and for moni- parts of the production areas, including inventory toring the demarcation of concession boundaries. maps. In general, it is responsible for the manage- The regulations require that surveyors supervise ment of the GIS database and the supply of up-to- boundary demarcation. However, the number of date forest production maps to the other depart- authorized surveyors is small, and they are general- ments of the SBB, and to external institutions. The ly not available for work in remote areas. For this Department for Production Planning provides tech- reason, the SBB allows loggers to provisionally nical advice and information to potential investors. mark boundaries, which are then verified by the The organizations of the timber industry pro- SBB with GPS. In case of disputes, the state land duced the CD-ROM Sustainable Forest Use surveyor has decisive authority. It is worth noting Portrayed, for the Suriname forest industry in 2004. that the land registration system in Suriname— The CD-ROM provides background information 28 more precisely the geographical coordinate system on sustainable forest management in Suriname, applied on basic topographic maps—does not fully including information on forest legislation, export support the use of GPS. regulations, guidelines for reduced-impact logging, and a database of the forest industry. The Center for Agricultural Research in Forests assessment and database Suriname (CELOS) is a second site for database information availability to the public storage and retrieval. It is involved in research on The government has a central role in the storage the assessment of natural resources. By interpreta- and retrieval of information for the forest industry tion of remote sensing data, and with the use of GIS and the public. The SBB has put considerable technology, CELOS made the first publicly available resources into this effort. Its datasets, with informa- digital database on the natural resources of tion on forests, forest use, and timber production, is Suriname. Information on the prevailing forest largely available to the public. Proprietary informa- types, and information on the provisional demarca- tion on license and concession holders remains tion of the specially protected forests and the timber confidential. Although data is not officially pub- production areas, is based on CELOS’ classification, lished, it is available on request. At this time, the done in 1999 through the interpretation of Landsat proposed Web site of the SBB is not operational and TM data. This information is available to potential does not allow access to the data on the Internet. users and is provided at cost. L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R CHAPTER SIX Forest Sector Competitiveness 29 INTRODUCTION also identified the lack of an enabling environment as one of the main constraints that depresses the Since the formulation of the National Forest Policy forest sector (ITTO 2006). The government per- in 2003, a number of other initiatives have been ceives the poor management of the forest compa- undertaken by the government to develop policies nies as the main constraint on the forest sector. to deal with the main problems of the stagnant The key groups that can be identified in the for- development of the forest sector. The private sector est production sector are: also produced a policy document promoting tim- ber production in the country. In the process of ■ Large domestic forest companies identifying strategies for the implementation of the ■ Small- and medium-size domestic forest compa- National Forest Policy, stakeholders mentioned the nies lack of commitment from the government as the ■ Local entrepreneurs from tribal communities underlying cause for the stagnant development. ■ Tribal communities ITTO has twice provided assistance to the Suriname ■ Foreign companies government, namely in 2003 and 2006. In this sec- tion, the main factors that affect the sector as iden- While each segment’s competitiveness is affected tified through several processes will be used to dis- differently, the poor environment for production is cuss the sector’s competitiveness. a constraint for all. As mentioned earlier, the poten- The majority of the Surinamese timber opera- tial sustainable timber production varies between tors are categorized as medium and small enterpris- 500,000 and 1.5 million cubic meters of roundwood es. Individual capacity is much reduced than other per year. However, the actual timber production Amazonian countries and production is irregular. has for decades averaged only 150,000 cubic meters ITTO’s 2003 analysis of the forest sector concluded per year. This means that the available potential is that Suriname needs an enabling, coherent policy utilized at only 10 to 30 percent of capacity. The and legal framework, together with a more entre- most important restrictions and constraints that preneurial private sector, if it hopes to become a net affect competitiveness are discussed below. They exporter of wood products. The private sector has are not listed in any order of priority. RESTRICTIONS AND CONSTRAINTS Smaller companies, including entrepreneurs AFFECTING FOREST SECTOR from the tribal populations in the interior, often COMPETITIVENESS have only minimal on-the-job training, and lack managerial skills to run a business profitably. At the same time, workers and management of foreign Forestry legislation companies, especially from South East Asia, lack For many years, it has been observed that there is a knowledge of the specific forestry conditions in need to revise the current Forest Management Act. Suriname. In 2003, ITTO recommended revising the act. In The limited institutional capacity also affects particular, ITTO suggested a change in the design of forest administration, research, and training insti- the forest revenue system and the criteria for deter- tutions, which hinders their capacity to promote mining concession size and duration. These aspects sector development. The study Forest Policy 30 need to be linked in such a way that they promote Implementation concluded that the sector organi- sustainable forest management, as well as strength- zations have a shortage of capacity and financial en the private sector. The changes would further means to lead and guide private industry. The minimize the need for administration and control. Chamber of Commerce has helped members of the ITTO’s recommendations are comparable with the sector join forces to negotiate forestry-related issues FAO’s advice to the government for revision of the with the government. revenue and concession systems. Under the current concession system, only companies with processing Land rights facilities can be granted a mid- to long-term con- cession, and only a vertical “integrated� company The lack of formal rights to resources surrounding can receive a long-term concession. This hampers their villages has long been a constraint on develop- the sustainability and the security of the invest- ment of local entrepreneurship within the tribal ments of logging companies. communities. More broadly, the issue of access to forests and traditional use rights in concessions remains unclear for the stakeholders and leads to Capacity and professionalism in the forest violations of the forest law. sector Much of the local timber industry originated from Forestry infrastructure family businesses established in the 1950s. Management is closely held, and technological Roads and bridges are in an alarmingly bad state development has been minimal. Only a small num- due to inadequate maintenance. The road network ber of logging enterprises are practicing intensive is not suitable for heavy loads, especially during the management, while even fewer follow management wet season. Tribal villages depend upon these roads, plans. As a result, logging is very inefficient and not and suffer the consequences of road deterioration. cost-effective. The average felling loss is estimated Small-scale producers of sawn wood and other for- at 20 percent, while the processing losses are esti- est products are less affected since they use lighter mated to reach 60 percent. vehicles that cause less damage. Local entrepreneurs There is a shortage of competent staff at all lev- even transport sawn wood using public buses. els, with little interest in a career in forestry. Jobs in Infrastructure problems don’t end when the logs the forest sector are often associated with low pay reach the capital. The harbor facilities are not suit- and unattractive working conditions. The domestic able for the unloading of heavy and bulky logs, industry (with the exception of a few larger compa- which is another bottleneck for the industry. nies) does not make good use of the country’s exist- ing vocational training institute to upgrade the level Credit and investments of its forest workers. This has contributed to the loss of trained workers and professionals to foreign Limited access to credit is a general problem for the companies and forest-related international organi- productive sector in Suriname. The forest industry zations. is unsatisfied with the treatment it receives from the L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R banks (National Forest Policy 2003). Various com- have fewer regulations with which to comply. Illegal panies have had problems getting investment loans. timber producers operate at lower costs. Eligibility The banks classify the forest sector as “highly risky.� requirements in the sector should include concrete The conditions in the interior, including the and verifiable standards for the education, training, absence of police officers and reduced public safety, and skills of management and forest workers (ITTO extensive illegal logging activities, and poor compli- 2003). ance with international standards, contribute to the The suggested policy measures to improve sector poor record companies have in repaying loans. (R. competitiveness are based on strategic development Kalloe, personal information). In Suriname, the initiatives of the government. The latest of these ini- granting of credits is coupled with the possession of tiatives is the execution of the ITTO pre-project real property, and banks do not accept concession “Improved strategies and training needs assessment licenses as collateral. to achieve sustainable forest management in 31 Wood transport companies, exporters, and Suriname.� This project lists these strategic objec- independent forest enterprises with rights over agri- tives: cultural land and other properties, are eligible for credit. Even for them, the conditions are unfavor- ■ Revise the Forest Management Act and forest able. It is somewhat easier for wood processors and regulations market traders to obtain credit because their sales ■ Promote investments in the forest sector are considered guaranteed, making repayment less ■ Improve compliance in the sector uncertain. Most companies are not aware of alter- ■ Provide information and support for sustainable native sources of funding, and even if they were, forest management their managers’ lack of formal education would ■ Improve capacity of industry organizations and make it difficult for them to access it. public sector agencies ■ Revise land-use and land-rights systems ■ Promote democratic forms of management of Communication and cooperation communal forests The lack of effective communication between stake- ■ Improve cooperation holders in the sector is a serious problem. ■ Increase the information base Periodically, stakeholders get involved in major for- est policy processes, but to date no permanent Key stakeholders for increasing competitiveness forum with the government exists. This applies to of the sector include: both communication by the government with the private sector, as well as with the people of the inte- ■ The Ministry of Physical Planning, Land, and rior. ITTO (2003) remarked that the government Forest Management should work more closely with the private sector, ■ The Foundation for Forest Management and social organizations, and other stakeholders to Production Control develop a common agenda to promote integral and ■ The Ministry of Regional Development sustainable forest management. ITTO further rec- ■ The Ministry of Justice and Police ommended developing more consultative and par- ■ The sector organizations ASHU, ABE ticipatory mechanisms to involve stakeholders as ■ Chamber of Commerce much as possible in decision-making processes. ■ Tribal organizations Effective implementation of the measures will INCREASING SECTOR COMPETITIVENESS only be feasible if stakeholders can agree on trans- parent participatory processes for the execution and It is generally recognized that there is an uneven monitoring of activities and projects. Stakeholder playing field for investors in the forest sector. consultations organized and led by the government Foreign investors receive preferential fiscal treat- have not resulted in full acceptance of the recom- ment, while producers from tribal communities mendations. FOREST SECTOR COMPETITIVENESS CHAPTER SEVEN Conclusions and Recommendations 33 rom the discussions with the experts, it is F The following conclusions and recommendation apparent that illegal logging is not identified come from this quick assessment of the state of ille- as a major issue in Suriname. However, gal activities within Suriname’s timber sector. addressing illegal activities is important for the country’s international and national image. In ■ The logging sector over the past decade was 2005, the total amount of illegally produced timber underdeveloped, consisting mainly of small recorded by the SBB amounted to almost 18,000 entrepreneurs struggling to make a living. The cubic meters of roundwood equivalent, which rep- number of more technologically advanced and resents almost 10 percent of the total registered larger companies is small, but increasing. This production. The SBB estimates that an additional could lead to an increase in commercially driven 20 percent (36,000 cubic meters) went undetected. illegal activities. The growing interest of multi- Illegal activities in the forest sector were much nationals to invest in the country could also lead more severe and extensive in the previous decade. to an increased volume of illegally produced Demand for roundwood by multinational forest wood. Institutional capacity building should be companies was high, and the country experienced a higher priority in anticipation of these poten- uncontrolled harvesting. Political favoritism and tially negative impacts. bribery made things worse. Since then the situation has improved, but Suriname’s rating on the ■ The lack of an enabling environment is regarded Transparency International Corruption Perception to be the main constraint for development of the Index is still very low (3.2). forest sector. ITTO suggests revising the Forest Poverty and the lack of good governance seem to Management Act, especially regarding the forest be the main underlying causes for those segments of revenue system and criteria for concession size the population who operate small-scale enterprises and duration in order to promote sustainable in a sphere of informality or illegality. On the plus forest management and a strong private sector. side, political will to improve the situation in the forest sector has been demonstrated by the approval ■ Poor management of forest companies and lack of the Council of Ministries for the establishment of of professionalism is another constraint on the a strengthened forest management authority. sector. Currently, only a small proportion of the logging enterprises are practicing intensive man- ■ The tendency to settle offenses administratively, agement. On all levels, there is a shortage of without judicial intervention, is seen as a weak- competent staff, and there is little interest ness in the administration and enforcement of among young people for a career in forestry. At laws. Although penalties are partially estab- the same time, there is a lack of adequate data on lished, there is still no single, uniform treatment the forest sector. of violations. This situation is not unique to the forestry sector. Overall, the judicial system has ■ Both commercial and poverty-driven illegal inadequate capacity, and suffers shortages of activities are promoted by the bureaucratic and judges and public prosecutors. More transparent time-consuming administrative procedures for and clear implementation of the regulations is obtaining logging licenses and for adhering to needed. Clear agreements between law enforce- the administrative requirements for the moni- ment institutions on how to deal with typical sit- 34 toring of production by the SBB. Development uations could help resolve the problem. Law of a new concession policy is one strategic action enforcement officers at the SBB and relevant mentioned in the forest policy that might con- police officers need to improve their awareness, tribute to resolving this issue. Decentralization knowledge, skills, and motivation concerning of the authorities to deal with administrative enforcement of the forestry act. It is further rec- procedures would remove another barrier for ommended that all staff improve their knowl- the producers to meet the administrative edge of sustainable forest management issues. requirements. ■ The implementation of sustainable timber pro- ■ Violations by small and illegal producers (40 duction systems in Suriname is still evolving. A percent of whom are descendants of tribal pop- number of regulations to ensure sustainability in ulations) are often related to their inability to the public production forests are not yet manda- meet the technical requirements for sustainable tory for all producers. Another problem is timber production. Small producers usually caused by the fact that certain texts do not reflect have only a limited amount of training in the current policy. This can be partially resolved by forest sector and lack managerial and business making clear cooperation agreements within law skills. The SBB is expected to address the lack of enforcement institutions. knowledge about the requirements for sustain- able forest management by implementing an ■ Border trade issues with Guyana continue to be awareness project with the small producers and a major problem for the sector. Illegal logging communities in the interior. This program can easily go undetected due to the lack of effec- should be expanded to include all producers in tive law enforcement at the border, and the gen- the sector. eral remoteness of the area. Timber smuggling into Guyana requires further discussion with the ■ Poor governance and law enforcement, along Guyanese counterparts of the SBB and higher with the acceptance of illegality in the forest levels of the government. areas, might be the result of the past internal war, continuing violence in the interior, and the ■ Illegal activities of tribal community descen- economic crisis in the country. The log tracking dants in the forest sector are frequently poverty system for timber production and GIS database related. The main driver behind illegal activities for forestry land use are the SBB’s basic instru- is the lack of employment opportunities. The ments for production control. However, the population in the interior is considered to be less human capacity required to use these tools is developed, and has a higher poverty rate than inadequate. Establishment of a self-funding for- the coastal area. The implementation of a devel- est management authority will help to solve the opment program focused on alternative sources issue of inadequate control. The implementa- of income generation for the interior could alle- tion of the Ministry of Justice Sectoral Plan viate the poverty issue. In recognition of the sit- should contribute to improved law and order. uation, the government has formulated a devel- L AW C O M P L I A N C E I N S U R I N A M E ’ S F O R E S T S E C TO R opment program for the interior that addresses solving land right issues makes their traditional basic human needs and infrastructure develop- production activities (logging and mining) ille- ment to promote other income-generating gal, even on their traditional village (forest) opportunities. Implementation of this plan is land. This is even more of an issue as production recommended. is becoming increasingly market oriented. Attention has to be given to the recommenda- ■ The lack of clear user rights for tribal communi- tion in the National Forest Policy for the gov- ties in regard to the resources surrounding their ernment to start a formal, structured dialogue villages has long been a constraint to the devel- on the matter of land tenure rights with the trib- opment of local entrepreneurship. The delay in al communities. 35 CONCLUSIONS AND RECOMMENDATIONS ANNEX 1 Key Actors and Contacts for Addressing Illegal Activities 37 TYPE OF ORGANIZATION CONTACT PERSON ADDRESS Tribal people’s organizations Federation of the Council of the Mr. J. Aviankooy Abongrastraat 12/Flora-A Aucan Traditional Authorities National Federation of Maroon Mr. Salomon Emanuels Anton de Komstraat 39 Organizations Maroon Women Network Ms. F. Grand-Galou Verl.Keizerstraat 92 Organization of Indigenous Mr. N. Aloeman Johannes Kingstraat 7, Rainville Peoples of Surinam (OIS) Sanomaro Esa Foundation (indigenous women’s mw H.T.Vreedzaam-Joeroeja p/a PAS - Verl.Keizerstraat 92 organization) Association of Indigenous Chiefs mw Drs. Laureen Jubithana p/a PAS - Verl.Keizerstraat 92 in Suriname (VIDS) Wanhati/Council of the p/a (PAS (via VIDS) - Verl. Saramaccan Traditional Mr. H. Jabini Keizerstraat 92 Authorities NGOs Bureau Forum NGOs Drs. H.Wesenhagen Henck Arronstraat 126 bv Caribbean Institute Ms. Maureen Silos Hoekstrastraat 5 Conservation International Drs.W. Udenhout Kromme Elleboogstraat 20 / (Suriname) Suriname Conservation Mr .Johans N. Hofstraat 1, 4e Etage Foundation TYPE OF ORGANIZATION CONTACT PERSON ADDRESS UNDP/Assistant Resident Mr. M. Ooft Heerenstraat 17 Representative Community Development Fund Mr. Roland King Kwassiestraat 8 Suriname World Wildlife Fund (WWF) Mr Ir. G.J. Zondervan Henck Arronstraat 63 Research organizations Tropenbos Suriname Ms. Drs. Shanti Adhin p/a Prof. Dr. Ir. Ruinardlaan Institute for Social Sciences; Drs. E. Akrum Leysweg - UvScomplex 38 University (IMWO) Faculty for Agrarian Production; Mr. A. Sheikkariem UvS-complex/Leysweg University of Suriname (UvS) Center for Agricultural Research Dr. R. van Kanten. Prof.Dr.Ir. Ruinardlaan in Suriname Governmental organizations Ministry of Natural Resources Ms. Held Mr. de Mirandastr. 13-15 Ministry of Labor,Technological H. Aroma Heerenstraat 40 Development, and Environment Ministry of Regional Development, Mr Petrusi Zwartenhovenstraat 225 Sipaliwini District Council for the Development of Mr Rudi Strijk Zwartenhovenstraat 225 the Interior Ministry of Spatial Planning, Land Ms. Marie Djosetro Cornelis Jongbawstraat Management and Forests Nature Conservation Division of Mr. B. Drakensteyn Cornelis Jongbawstraat the Forest Service National Institution for Ms. Syliva Ang Onafhankelijkheidsplein Environment and Development Foundation for Forest Management and Production Mr. I. Krolis Ds. M.L. Kingweg pc 283 Control Fund for the Development of the p/a Terrein Commissariaat - Mr. Steven Alfaisie Interior (FOB) Van Sommelsdijkstraat 2 National Planning Bureau Mr John Bouterse Dr. Sophie Redmonstraat 118 Forest industry Platform Timber Sector (PHS) Mr. A. Gesser Loggers Association; ABE Mr. B.Chin Ten Fung Sawmillers Association; ASHU Mr. K. 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