0208-A1

Participatory Forest Sector Economic Development: From Conceptual Framework to Application in Honduras

Richard P. Vlosky[1], Michael A. Dunn, Arturo Chavez, Pamela A. Monroe, Todd F. Shupe and Denese Ashbaugh Vlosky


Abstract

In late October 1998, Honduras suffered the brunt of Hurricane Mitch, one of the largest category 5 hurricanes in recent memory. The Government of Honduras estimated that more than 8,000 people died due to the storm. Up to a third of the country’s 6 million people were displaced and over 1 million were at least temporarily uprooted from their homes or livelihood. Hurricane Mitch did not just cause numerous deaths and immense damage in the cities; it also caused deforestation on the Caribbean coast of Honduras and disruption of the forestry sector in general. One effort to address post-Hurricane Mitch forestry issues was the formation of a forestry and forest products sector project that was part of the Louisiana Alliance/Presidential Program for Investors in Honduras (ALIANZA). A team from the Louisiana State University (LSU) AgCenter, School of Renewable Natural Resources, and the School of Human Ecology is conducting the project. This project was primarily a technical knowledge transfer effort funded by the United States Agency for International Development (USAID) and it focused on forest products utilization and processing, economic and rural development, marketing and business development, social dimensions, and value-added wood processing. The LSU AgCenter assembled a team of specialists to work with counterparts in Honduras in each of these areas. Technology and knowledge transfer has helped Hondurans to make critical decisions regarding forest sector development, enhance the country’s economic development activities, and preserve the sustainability of their forest resources.


Project Rationale

The primary objective of the forestry/forest products project was to empower people from many stakeholder groups to better utilize forests and associated areas impacted by forests in Honduras. The emphasis was on both public and privately owned and managed pine and hardwood forests and forest products sectors.

The LSU AgCenter team of specialists worked with counterparts in Honduras in each of these areas. Stakeholder groups represented by Honduran counterparts were from non-governmental organizations, academia, government, industry, and local village/municipalities.

Objectives

The primary objective of the forestry/forest products project was to empower people from many stakeholder groups to better utilize forests and associated areas impacted by forests in Honduras in an efficient and sustainable manner. The emphasis was on pine and hardwood forests and forest products sectors that are both publicly and privately owned and managed. Technology and knowledge transfer can help Hondurans make critical decisions regarding sound forest management and wood utilization that will enhance the country’s economic development and poverty alleviation activities while preserving the sustainability of their forest resources.

Specific objectives of the project were:

1. Formation of a national group of representatives from the public and private sectors to discuss and identify relevant topics in which the LSU AgCenter can collaborate in the goal of sustainable development of the forest sector in Honduras.

2. Development of a plan of action among the two groups (LSU and the National Group of Support Counterparts) to execute interactive discussions and workshops in the areas that are found to have greatest commonality between stakeholder groups and have a positive impact in Honduras.

3. Development and initiation of applied projects and activities that included the following areas: sustainable forest certification, value-added wood product processing and marketing, export promotion, rural development, establishing Internet-based wood products exchanges and networks for the public and private sectors, and technical training at host institutions.

4. Development of a long-term prioritization plan for the forest sector.

The Conceptual Framework

There was an interactive strategic planning component included in the framework of the informational and educational roundtable/workshops that were conducted. These sessions were divided into three parts. The first was a presentation by LSU AgCenter team members on the specific workshop topic. The second part focused on issue generation and discussion. Finally, the third part concentrated on developing action plans to address identified issues.

In the issue identification sessions, a broad cross section of stakeholders, representing all aspects of forestry and forest products (such as landowners, industry, and government), came together to generate issues that needed to be addressed with respect to maximizing the potential of forest-based communities in Honduras. These discussions were a follow-up to individual meetings that took place at previous site visits. The issue identification refinement provided a starting point for developing action plans.

In the planning sessions, stakeholders with the necessary expertise and desire to address the top issues moved forward with project-oriented activities. This involved goal setting and developing methods for evaluating projects/process.

The team proceeded with specific actions to address some identified issues. Based on meetings with over 40 individuals representing all stakeholder groups, over 75 potential post-roundtable/workshop project ideas were generated. Approximately 20 projects were committed to, generally falling into the following broad areas:

In the long-term, forest-sector development in Honduras can contribute to an increase in rural employment and a lessening of poverty. The success of development projects, such as the ALIANZA, will be measured in the future by their ability to encourage environmentally sound forest management practices and sustainable growth of the forest-based industry sector.

The forest sector team encountered very few obstacles in the course of the project. This was primarily due to the methodology developed and executed. This methodology included taking three months on the front-end of the project to familiarize the team with the various landscapes in Honduras in which we would be working. These included political, social, forest sector, cultural, and investment landscapes.

The roles and responsibilities for counterparts and the LSU AgCenter team were articulated early in discussions with stakeholder groups. We clearly communicated with our counterparts that we had no large sum of money to impart to them. Rather, we came to work WITH counterparts, to impart knowledge, and to help to leave something lasting long after we were gone.

We also did not make promises that we could not keep within the context of partnership relationships with counterparts. This was the most important lesson that we learned.

Application

Contact/Counterpart Identification

When the project was officially funded and underway in the fourth quarter of 2000, the initial tasks were to identify stakeholders and develop relationships with key representatives from these groups. In addition, counterparts were being identified. It was made clear from the outset that the relationships with potential counterparts were a partnership and not a handout. This approach was not well received by some but was embraced by others. Overall, the major areas of opportunity to interface with counterparts was with regard to better utilization of Honduras’ forest resources for value-added wood products, knowledge and technology transfer, and, hopefully, providing input and expertise that would be used by policymakers in an effort to improve economic conditions and ameliorate poverty in Honduras. Key counterpart agencies/institutions were identified for close contact and dialog.

Project Planning and Implementation

The first projects implemented were a series of workshops and roundtable discussions to introduce the team, its core competencies and to solicit input from stakeholders on what further areas of emphasis and projects would be of greatest utility in Honduras. Based on meetings with over 30 individuals representing all stakeholder groups, the following list of potential post-roundtable/workshop projects was generated. Although many of the suggestions fell outside the scope of this project, they are all included as they may become priorities for USAID funding and linkages in the future.

Value-Added Wood Processing

The secondary, or value-added, forest products industry is global in scope. In order to be competitive, an understanding of market forces and structures is essential. In this light, the stakeholders we interviewed believe that the Honduran secondary (value-added) solid wood products industry should be further developed. The information that resulted from post-workshop projects should aid companies that might not be able to internally generate market data, give industry researchers comparative information and support policy makers to better serve the value-added wood products industry. In addition, adding value to Honduran forest resources is a logical alternative to exporting value in the form of raw materials or primary products.

Workforce Preparation/Training

Workforce preparation may well be one of the most important economic issues facing the world economy. In particular, education and training impact many facets of the social and economic structures. The economic health of Honduras, its communities and its families, are dependent on success in a global marketplace where high levels of workplace performance are needed to successfully compete. New and existing workers who are involved in forest-sector development must have the necessary knowledge, skills and abilities. Accordingly, one important post-workshop activity will be to conduct an assessment of workforce availability and training needs in Honduras.

Alleviating economic hardship of the Honduran people was another area of focus by USAID. The objective was to address basic and vocational education and training. Presently, very few opportunities and options are available for students, particularly in the rural sector, to continue their education after primary school.

Issues we suggested that could be addressed in the context of the forest-based sector included how to: induce greater investment in training and skills development by individuals, businesses, communities and governments; improve partnerships between government, educators and industry so that people learn skills that are or will be needed by employers in the forest-based sector; build better programs and services to assist in understanding the demands of the job market and helping employees and employers to prepare and; examine ways to develop effective customized and on-the-job training programs that could involve a myriad of training delivery systems and training levels as indicated in the figure below. What figure?

Academic Scientist and Student Exchange

We anticipate that individuals will be interested in pursuing an advanced degree in wood products utilization at Louisiana State University following the workshops. The degree program will be specifically tailored to further empower the individual(s) to return to his or her country as a leader in wood products utilization and well trained in sustainable forest products utilization. Demonstrations and academic exchange would include advanced education/training and research participation in Honduras and the U.S.

Forest Sector Marketing and Promotion/eBusiness

The goal of a promotional program for wood products industry development was to increase the awareness, utilization and applications for Honduran wood products, particularly value-added, or secondary products. Such efforts may include but are not limited to advertising, reports, brochures, trade missions, market studies, and other activities designed to make customers and potential customers of Honduran wood products more aware of the availability and quality of such products.

Policy and Planning

A number of contacts suggested that the LSU AgCenter team could aid in the areas of forest sector policy and planning. Specific suggestions are listed below. Some examples of activities engaged in were: help in coordinative role in planning for government, review and comment on PLANFOR, the 20-year forestry plan (1996-2015), assist in wood processing and marketing through technological transfer, and prepare options to include the campesinos in forest management plans at a local level.

Information and Research Support

Information maintenance and research support are required to support the forest products sector in Honduras. Examples of the many suggested activities are:

1. Develop an industry competitive value chain information network.

2. Develop an industry interactive database that will include extensive company data, trade leads, buyer and seller matchmaking capabilities and joint venture opportunities.

3. Information Support System (ISS) for forestry/forest products sector; Business/marketing oriented.

4. Surveys of firms, workers, customers, and others with information relevant to the secondary wood products industry.

5. A periodic census of primary and secondary wood products producers.

6. Publications and reports on the relative competitiveness of the Honduran (or delete “the” and make it Honduras’) secondary wood products industry.

7. Computerized databases of market, product, production and other relevant information.

8. Domestic and international market development research.

9. Research on regulatory issues facing the industry in the areas of environmental and safety compliance including the costs for environmental regulation and monitoring compared to neighboring states.

Forest Sector Investment

USAID programs emphasize stimulation of rapid economic growth to include support to entrepreneurs and stakeholders in the forest sector who need access to land, technology, markets and credit/financial support. One component of the foundation for economic growth in a country such as Honduras is the rich natural forest resources, which must be sustainably managed. A number of ideas regarding investment were generated by contacts including:

1. Furniture maquilas in San Pedro Sula (the industrial center of Honduras). Prepare a list of projects that can be completed according to a domestic maquila model. This should include artisans so they can produce furniture components in their small shops, and then send them to a central processing facility for finaly product assembly.

2. Market study for particleboard and composite panels.

3. Development of a furniture cooperative in San Pedro Sula. Currently, San Pedro Sula is export oriented but may benefit from communication technology.

4. Look at RTA furniture industry possibilities.

5. Conduct a feasibility study for developing a small-scale composite panel facility (particleboard, hardboard, etc.)

6. Identify individuals with entrepreneurial spirit to promote and develop value-added products and lesser-used species.

Results Achieved

Following is a list of what we consider to be the most significant accomplishments made in the course of the project. All of these projects are partnerships with counterpart entities and individuals in Honduras. Throughout the course of each project, the Honduran participants received the knowledge and skills to continue to develop and re-transfer technology/knowledge to other Hondurans.

1. Developing and executing a promotional strategy for CUPRFOR, the national wood products laboratory located in San Pedro Sula. CUPROFOR is in need of an international donor/sponsor to help support its research and technology transfer on lesser-used wood species in Honduras. A current obstacle in this regard is the lack of international recognition of CUPROFOR.

2. Assisting with development of a 5-year Extension Plan to be executed by the national forestry university (ESNACIFOR).

3. Conducting an in-depth survey of small/medium value-added wood products manufacturers. This survey is a first step in a larger project to integrate the technical and industrial capabilities of small and medium entities to support better production methods and access to markets.

4. Training faculty from ESNACIFOR (the University for Forestry and Natural Sciences) at the Louisiana State University AgCenter in Baton Rouge, Louisiana in the areas of wood technology, marketing and business development, extension, and human dimensions.

5. Devising a forest-sector development and investment prioritization strategy for Honduras for FIDE, the Honduras National Investment Corporation.

6. Building a solar kiln for training and teaching purposes (ESNACIFOR).

7. Development of social sector development modules and extension materials in the context of forest industry development for CADERH a non-governmental organization that focusses on human development in Honduras.

Next Steps

Beyond the problem assessment that occurred in this project, the next step should be implementation. The first important step for implementation or action planning, then, is to convert the problems that were identified into goals that can be achieved. Therefore, the second step in this strategic planning support process for the Honduran forest sector will be to break the overall goal of poverty amelioration through forest sector development into smaller objectives (tied to recommendations) that are reasonably achievable and measurable.

Structured planning procedures should produce working plans for addressing issues by goals, objectives, action steps, resources, time-frames and contacts. These working plans should become the foundation of a forest-sector strategy for the next 3-5 years. They are also the foundation for cross-agency collaboration. In order for collaboration and cooperation to work between agencies and organizations in the forest sector, there needs to be a sincere desire to work together. Collaboration requires extra effort and energy, especially for the group that is trying to build a bridge to others. Many times, it takes more energy on the front end because stakeholders have to do most of the initial construction. In the long run, the forest-sector will have more support, better utilization of resources and better access to different resources (which include funding and leadership).

Summary

The project resulted in tangible deliverables across a broad spectrum of forest sector stakeholders in Honduras. Significant professional and personal relationships were developed between LSU AgCenter team members and Honduran counterparts. In the long-term, forest-sector development in Honduras can contribute to an increase in rural employment and a lessening of poverty. The success of development projects such as the ALIANZA will be measured in the future by their ability to encourage environmentally sound forest management practices and sustainable growth of the forest-based industry sector.

Part of a broader economic planning process in Honduras, the methodology actualized in this project addresses many aspects of forest-sector development. In addition to strict sectoral development, forest-sector development can stimulate economic development in chronically depressed regions of the country.

We barely scratched the surface in sectoral development by developing some benchmark perspectives and by transferring knowledge desired by stakeholder groups. Any further processes or actions should include continued analysis and systematic follow-up that can accommodate changes in demand, supply, market conditions, economic conditions, social conditions, etc. This approach can assist local and national policy makers in formulating strategies for implementation of development efforts designed to capitalize on defensible market driven opportunities in forest products industry sectors within social and sustainability frameworks.

Regardless of the underlying motivation, and there are many in Honduras, (rural development, adding value, employment enhancement, etc.), the recommendations are but the first step in a planning framework that can help develop sustainable strategies for forest products industry development. Such development can add value to existing resources and create employment opportunities with transferable skills.

For success to be achieved, many stakeholders, including local development organizations, industry members, academic institutions and state and local economic development agencies must be involved to move from baseline analysis to program implementation.

In summary, in addition to simply transferring technology and knowledge, it is hoped that this project will have the long-term effect of increasing rural employment and contributing to ameliorating poverty. The success of this project can be measured in the short term by the extent to which we engaged in technology and knowledge transfer with Honduran counterparts. In the long-term, sustainable growth of the forest-based industry sector will determine the success of this project.


[1] Forest Products Marketing, Louisiana Forest Products Laboratory, School of Renewable Natural Resources, Rm. 227 Louisiana State University Agricultural Center, Baton Rouge, LA 70803. Tel: (225) 578-4527; Fax: (225) 578-4251; Email: [email protected]; Website: http://www.rnr.lsu.edu/lfpl