PROGRAMME IMPLEMENTATION REPORT 2004-05 WEB ANNEX

Programme Entity	Title	Type	Lead Division
242A3	Forestry Sector Outlook Studies	Technical Project	FOP

Rationale

Development problem to be addressed: forestry policy makers do not always have a complete understanding of the long-term outlook for the sector and future economic, environmental, technological and social trends affecting it. This can lead to policies that do not, or incompletely support the sustainable use of resources.
Proposed contribution to problem resolution: a policy environment based on more complete understanding of long-term forestry issues should lead to more sustainable forest management practices which, in turn, contribute to addressing future economic, environmental, technological and social trends affecting the sector.
Intended end beneficiaries: policies which take into account long-term trends should benefit all stakeholders with interest in forestry policy, including investors, owners and managers, as well as indigenous and vulnerable groups.

Objective

Policy formulation in countries and donor assistance and investment programmes that take into account long-term opportunities and challenges of the forestry sector, stimulated by enhanced strategic planning capacity.

Indicators

Examples of forestry policy reforms that explicitly reflect the long-term outlook for the sector.
Examples of investment planning reflecting a long-term perspective.

2004-05 Implementation Progress - Achievements, Success Stories and Lessons Learnt

All the major outputs envisaged under this programme entity have been accomplished. The "State of the World's Forests 2005" was prepared and distributed in all five FAO languages. Substantial work was done in capacity building in strategic planning, especially in Africa taking advantage of extrabudgetary support. The European Forest Sector Outlook Study was completed and the results disseminated, and the United Nations Economic Commission for Europe (UNECE), in collaboration with FAO, has identified a number of areas for follow up. The Latin America Forest Sector Outlook Study was finalized. All the activities envisaged under the Forestry Sector Outlook Study for West and Central Asia were completed. A number of subregional and regional workshops were organized and 20 country outlook papers and 8 thematic studies were completed. All the outlook studies were undertaken with the full involvement of the member countries in the respective regions as well as other regional and subregional organizations, academic institutions, etc. This collaboration has ensured ownership of the outputs by the countries enabling improved uptake of the recommendations of these studies.

Major Output	Biennial Output	Title	Type	Contributing Divisions (Lead Division in bold)	Status
001		State of the World's Forests (SOFO).
	401	SOFO 2005	Information (products, systems, databases)	FOP	Completed
002		Support to improved capacity for strategic planning at the national, sub-regional and regional levels.
	401	Four regional/subregional workshops helping selected countries to build up country capacity in long term strategic planning	Training (including training courses and materials)	FOP RAF	Completed
	402	Assistance to selected countries in Africa to revise country outlook papers	Direct advice to Members; field programme support	FOP RAF	Completed
	403	Regional network of forestry planners to strengthen planning capability	Coordination and information exchange	FOP RAF RNE	Completed
	404	Two global and 4 regional thematic studies assessing long term trends on selected topics	Studies and analyses	FON FOP RAF RAP RLC RNE	Modified
003		Forestry sector outlook study for Latin America and the Caribbean (LAFSOS).
	401	Draft outlook study for Latin America and the Caribbean (LAFSOS)	Studies and analyses	FON FOP RLC	Completed
004		European forestry sector outlook study (EFSOS).
	401	European Forest Sector Outlook Study	Studies and analyses	FON FOP LOGE SEUR	Completed
	402	Identification of themes/ topics that require in-depth assessment and follow-up studies	Studies and analyses	FOP	Completed
005		Forestry sector outlook study for the Near East and Central Asia.
	401	Five thematic studies relating to the outlook study on West and Central Asia	International undertakings, agreements/conventions and standards	FOP RNE SEUR	Completed
	402	Assessment of trends in production, consumption and trade of forest products and updated forecasts to the year 2020	Information (products, systems, databases)	FOP RNE SEUR	Completed
	403	Draft of the outlook report for the West and Central Asia region	Studies and analyses	FON FOP RNE SEUR	Completed
	404	Two subregional workshops to discuss and finalize the outlook report	Coordination and information exchange	FON FOP RNE	Completed

Programme Entity	Title	Type	Lead Division
242A4	Economic Aspects of Forests	Technical Project	FOP

Rationale

Development problem to be addressed: in the context of achieving sustainable management, the intergovernmental dialogue on forestry must be enlightened by sufficient analysis of key issues such as financing, trade, methods of valuation and internalisation of forest-based goods and services, and forestry's role in employment generation, particularly in rural areas.
Proposed contribution to problem resolution: forestry policies and management practices that are economically sustainable over the long-term should stimulate investment in the sector, optimise goods and services provided and improve employment and income generation capacity for both large and small forest enterprises.
Intended end beneficiaries: better fiscal and land tenure arrangements, incorporation of social costs into forest management and policy decisions and a higher level of financing for sustainable forest management should benefit forest owners, sectoral employees and other groups deriving their livelihood from the sector.

Objective

Forest policy makers, owners, managers and investors design policies and pursue practices that are economically sustainable over the long-term and lead to increased investment and employment in the sector, including in small-scale enterprises.

Indicators

Number of countries changing fiscal policies and adopting innovative mechanisms to finance sustainable forest management.
Examples of improvements in policies and strategies that support increased sector income generation and employment.

2004-05 Implementation Progress - Achievements, Success Stories and Lessons Learnt

Major success with regard to PE-01 has been achieved though the complete revision of forestry fiscal policies in Liberia and the initiation of a public-private partnership to fund the control and monitoring of forest products production and exports. Work in Fiji was also successful, highlighting that they have a very good fiscal system for the forestry sector that ensures almost complete rent collection and equitable distribution among different stakeholders. Work on PE-02 has focused on the Mekong Region and revealed that there are opportunities to strengthen the contribution of forestry to employment and income generation through targeted investments and policy reform. Although not yet completed, it is expected that this work will highlight several opportunities that countries in the region could pursue.

Major Output	Biennial Output	Title	Type	Contributing Divisions (Lead Division in bold)	Status
001		Mechanisms to enhance resource mobilisation and financing in support of sustainable forest management.
	401	Development of innovative methodologies for resource mobilization and investments in sustainable forestry management	Methodologies and guidelines (including pilot testing and demonstration)	FON FOP RAF RAP RNE	Completed
	403	Technical advice to countries to improve/rationalize revenue collection systems	Direct advice to Members; field programme support	FOP RAF RAP RNE	Completed
002		Tools and techniques for the valuation, internalisation and optimisation of the provision of forest based goods and environmental services.
	401	Methodologies for assessing and internalizing the values of forest-based public goods, addressing critical environmental issues	Methodologies and guidelines (including pilot testing and demonstration)	FOP RAF RAP RNE	Modified
	402	Case studies on economic issues relating to forest-water linkages and approaches to internalizing the externalities	Studies and analyses	FOP RAF RAP RNE	Cancelled
	403	Position papers on economic issues in CDM investments in selected countries	Studies and analyses	FOP RAF RAP RNE	Modified
003		Assessment of employment and income generation opportunities from forestry.
	401	Five country case studies analyzing the employment and income generation potential of forestry, taking into account technological changes	Studies and analyses	FON FOP LOGE RAF RAP RNE	Postponed
	402	Case studies on small-scale enterprises focusing on their role in poverty alleviation, taking into account emerging constraints and opportunities	Studies and analyses	FON FOP LOGE RAF RAP RNE	Postponed
	403	Position paper examining the economic aspects of poverty alleviation through forestry interventions	Studies and analyses	FON FOP	Modified
005		Assessment of emerging issues and opportunities in the trade of forest products and services.
	401	Report on shifts in trade patterns, in response to differential economic performances of countries and regions	Direct advice to Members; field programme support	FOP	Postponed
	402	Support to inter-governmental discussion of forest trade policy and forest certification issues	International undertakings, agreements/conventions and standards	FON FOP	Completed
	403	Case studies on trade of goods and environmental services focusing on their implications for sustainable forest management	Studies and analyses	FOP LOGE RAF RAP RNE	Postponed

Programme Entity	Title	Type	Lead Division
242P1	Forest Products Information	Continuing Programme Activity	FOP

Rationale

Development problem to be addressed: current national policies relating to forest products and operations practices do not always promote sustainable use of these resources.
Proposed contribution to problem resolution: a policy environment which supports the sustainable use of forest products and efficient forest operations practices, as well as awareness at national, regional and global level of the contribution of wood and non-wood forest products to national economies, should result in a more balanced and sustainable use of these resources.
Intended end beneficiaries: more sustainable use of forest products and sound forest operations practices would ultimately benefit forest owners and managers, as well as civil society, in particular vulnerable groups whose livelihoods depend on forest resources.

Objective

National forestry strategies and policies are based on an improved awareness and understanding of forestry product trends and support their sustainable use, and forest management better reflects sustainable harvesting practices.

Indicators

National policies and strategies that support the sustainable use of forest products.

2004-05 Implementation Progress - Achievements, Success Stories and Lessons Learnt

All the biennial outputs envisaged under the programme entity have been produced. The "Yearbook of Forest Products" was produced during 2004 and 2005 and distributed in print and electronic forms. This publication continues to be the only source of comprehensive global information on all wood products and forms the basis of most analysis relating to trends in production, consumption and trade of forest products. In addition, surveys have been conducted and data compiled and disseminated on information relating to pulp and paper capacities and the extent of use of recovered paper. A synthesis version outlining the trends in production, consumption and trade of forest products was produced to enable policy-makers, planners and general users to understand the overall situation. The auto-evaluation of the programme entity carried out in 2005 gave a clear indication of the extent of use of the various information products by governments, the private sector, non-governmental organizations, academic institutions, etc. The FAOSTAT forest products data are one of the most frequently downloaded information products. Similarly, the information bulletin "Non-Wood News" represents an important source of global information on non-wood forest products.

Major Output	Biennial Output	Title	Type	Contributing Divisions (Lead Division in bold)	Status
001		Information on the social and economic contribution of harvested forest products.
	401	Publication and distribution of periodical information on forest harvesting, wood energy, and non-wood forest products	Information (products, systems, databases)	FOP	Completed
	403	Regular publication and distribution of Non Wood News and the electronic newsletter Digest	Information (products, systems, databases)	FOP RAF RAP RNE	Completed
	404	Information collection, which will also serve as inputs to FORIS	Information (products, systems, databases)	FOP	Completed
	405	Regular publication of Recovered Paper Statistics and the Pulp and Paper Capacity Survey	Information (products, systems, databases)	FOP	Completed
002		Forest Products yearbook and other data on forest products, recovered paper and pulp and paper capacities.
	401	Publication and distribution of periodical information on forest harvesting, wood energy and non-wood forest products	Information (products, systems, databases)	FOP	Completed
	402	Publication of the Forest Products Yearbook in 2004 and 2005	Information (products, systems, databases)	FOP LOGE RAF RAP RNE SAFR SEUR	Completed
	403	Production and dissemination of summary analysis of key trends in production, consumption and trade of forest products	Information (products, systems, databases)	FOP	Completed

Programme Entity	Title	Type	Lead Division
242P2	Appropriate Utilisation of Forest Products	Continuing Programme Activity	FOP

Rationale

Development problem to be addressed: in many countries, current practices regarding forest products and services focus on employment and income generation at the expense of national resource conservation and environmental protection goals.
Proposed contribution to problem resolution: national forest product utilisation policies and practices based on a solid understanding of environmentally sound harvesting, engineering and processing methods, and a better balance between economic and social concerns, should lead to sustainability in the provision of these products.
Intended end beneficiaries: environmentally sound, economically feasible and socially acceptable provision and utilisation of forest products and services contributes to food security and poverty alleviation of vulnerable groups, and supports overall social and economic development.

Objective

National forest wood and non-wood product utilisation practices are based on a solid information foundation and reflect balanced economic and social concerns.

Indicators

Number of countries with forest products' utilisation policies and practices supporting sustainable use of these resources.
Extent to which technologies and practices advocated by FAO are integrated into national forest products' management practices.

2004-05 Implementation Progress - Achievements, Success Stories and Lessons Learnt

Interest has been growing in recent years in non-wood forest products as an important element of sustainable forest management and in their contribution to improving rural livelihoods. The annually published bulletin "Non-Wood News" was rated by the auto-evaluation conducted in 2005 as an excellent resource for foresters, researchers and individuals working for rural development in many countries. It has been therefore decided to increase its publication frequency to twice a year. Bioenergy has been the focus of increasing attention in the world community, leading to the creation of a PAIA and IDWG on bioenergy as a result of interdepartmental collaboration. The Forest Products and Economics Division's technical publications on wood energy provide valuable information to both developing and developed countries.

Major Output	Biennial Output	Title	Type	Contributing Divisions (Lead Division in bold)	Status
001		Best practices for forest harvesting and engineering.
	401	Training on best practices in wood harvesting and engineering for the forest industry	Training (including training courses and materials)	FOP	Completed
	402	Capacity building on implementation of environmentally sound harvesting practices, including the African Code	Training (including training courses and materials)	FOP	Modified
	403	Development of regional code for forest harvesting for Latin America in collaboration with Latin American Forestry Commission	Methodologies and guidelines (including pilot testing and demonstration)	FOP RLC	Postponed
002		Best practices and case studies on forest products as environmentally sound alternatives.
	401	Promotion of wood-energy as an environmentally friendly source of energy and its integration into national agriculture, energy and environment development policies	Direct advice to Members; field programme support	FOP	Completed
	402	Promotion of best practices in wood processing and utilization	Training (including training courses and materials)	FOP RAF RAP RLC	Modified
003		Best practices and methodologies for the sustainable use of non-wood forest products.
	401	Elaboration of methodologies for assessment, management and utilisation of non-wood forest products (NWFP)	Methodologies and guidelines (including pilot testing and demonstration)	FOP	Modified
	402	Facilitation of consensus on definitions and codes of key non-wood forest products	International undertakings, agreements/conventions and standards	FOP	Modified
004		Guidelines and methodologies for environmental impact assessments of forest operations.
	401	Analysis of environmental issues related to forest utilisation and more generally in the forest sector	Studies and analyses	FOP	Modified
	402	Support to capacity building on environmental impact assessments	Training (including training courses and materials)	FOP	Completed
005		Information on sustainable wood energy methodologies and technology.
	401	Development of methodologies for Woodfuel Integrated Supply and Demand Overview Mapping (WISDOM) to enhance planning and policy development in this sector	Methodologies and guidelines (including pilot testing and demonstration)	FOP	Completed

Programme Entity	Title	Type	Lead Division
242S1	Support to Field Projects and Advisory Services	Technical Service Agreement	FOP

Indicators

Technical backstopping to field projects
Advise to member countries

2004-05 Implementation Progress - Achievements, Success Stories and Lessons Learnt

Appropriate and timely policy/technical advice has been provided in response to queries from member countries. On-site advice has also been provided on wide-ranging issues related to forestry, especially economic aspects and forest products.

Major Output	Biennial Output	Title	Type	Contributing Divisions (Lead Division in bold)	Status
001		Strengthened interaction with the field programme
	401	Support to field projects	Direct advice to Members; field programme support	FOP	Completed
002		Advice to member countries
	401	Advice to member countries related to forest products and economics	Direct advice to Members; field programme support	FOP	Completed
003		Intra-departmental cooperation