Chile: Adapting institutional arrangements for extension - multiple partners

Chile is often cited as a forestry success story. The country has more than 1.6 million ha of plantations and, over the last decade, has been planting at a rate of 90 000 ha per year. Over 30 years, Chile increased its exports of forest products 30-fold and, by 1991, forest products accounted for more than 10 percent of exports.

Many reasons have contributed to this success, including macropolicies such as government support for an expanded role for the private sector, stable macroeconomic policies, liberal trade regimes, deregulation of transport and labour markets and clear and secure land and tree tenure rights. In addition, a plantation grant scheme was introduced that was limited in time, well implemented and covered up to 75 percent of plantation costs.

Diminishing state financial resources led to a rethinking of the institutional arrangements for providing extension advice. New configurations emerged, with a greatly diminished role of the state at the field level. The government has contracted with private consulting companies to provide for the larger commercial farmers and with NGOs for small subsistence-oriented farmers. A government subsidy of about US$330 is provided for each subsistence farmer who participates. Although the contractual framework is perceived as fairly rigid by some partners, NGOs can still use extension methods that are based on their prior experience.