3.1 Forestry Reform Practice and Long-Term Planning
3.2 Sustainable Development Strategy for China's Forestry
3.3 The Overall Objectives of China's Forestry Development
3.4 Policy Measures for Forestry Development
The Third Plenary Session of the Eleventh Central Committee of the Communist Party of China (hereinafter referred to as "CPC") convened at the end of 1978 opened a new stage of development for the socialist undertaking in China. Ideological emancipation and seeking truth from facts made people start thinking about such questions as how to promote development, consolidation and advancement of socialism and how to search for the effective means to realize public ownership. During the past 18 years of reform and opening up which have experienced such phases as dominance of the planned economy supplemented by market adjustment - the planned commodity economy - integration of the planned economy and the market economy establishment of the socialist market economic system, China has undertaken an extensive and profound social reform under the guidance of Deng Xiaoping's theory on development of the socialist market economic system with Chinese characteristics. The intention has been to change the production relations and components of the superstructure not adapted to the development of productive forces and achieve in a phased way the dual fundamental changes of the economic system and the mode of economic growth. As a major component of China's reform practice, the forestry sector in China, having experienced pains of reform and strategic choices, has sought development from reform and opened up a road of forestry development with Chinese characteristics through the implementation of a series of important policies.
3.1.1 Reform Practice in China's Forestry Sector
3.1.2 The Long-Term Targets and Strategy of China's Forestry Reform
During the past 18 years of reform and opening to the outside world which have experienced such phases as dominance of the planned economy supplemented by market adjustment - the planned commodity economy - integration of the planned economy and the market economy and eventually establishment of the socialist market economic system, China has undertaken an extensive profound social reform under the guidance of Deng Xiaoping's theory on development of the socialist market economic system with Chinese characteristics, so as to change the production relations and components of the superstructure not adapted to the development of productive forces and materialize in a phased way the dual fundamental changes of the economic system and the mode of economic growth. As a major component of China's reform practice, the forestry sector in China, having experienced pains of reform and strategic choices, has sought for development from reform and opened up a road of forestry development with Chinese characteristics through the implementation of a series of important policies.
3.1.1.1 Outline of the Essential Points in State Reform and Forestry Reform in the First Phase
Between the Third Plenary Session of the Eleventh CPC Central Committee and the Fourteenth CPC National Congress, reform in China experienced 3 phases: Between 1979 and 1984, the focus was on rural reform which subsequently demolished the People's Commune system which combined together governmental administration and community management. Application of diversified forms of joint household contract responsibility system and substantial increase in the purchasing prices for farm produce stimulated farmer enthusiasm for commodity production, resulted in substantial increase in farm produce and rise of township enterprises with historical changes taking place in rural economic system. A road of poverty alleviation and modernization was found for rural China. The urban reform started with enterprise reform on a trial basis, special economic zones were established and 14 coastal cities opened up. Throughout this period, rural forestry in China was dominated by public ownership with coexistence of multiple economic sectors and breakthrough was made in the establishment of pluralistic, multi-level and multi-type forestry management entities.
3.1.1.2 "3D" Reform to shape new management entities and investment mechanism in forestry management
Farmers are the main forces for production in forest regions. Sustainable forestry development in China requires the relevant policies to find the junction points of forestry development and public benefits, and establish benefit guarantees and encouragement mechanisms.
In March 1981, the CPC Central Committee and the State Council promulgated the Decision on Several Issues Related to Forest Protection and Forestry Development which, in light of the long-lasting ambiguous ownership of mountains and forests and unsecured benefits of local labourer, underlined that the prime policy for rural forestry reform was to determine the ownership of mountains and forests, designate mountain slopes for household uses and define forestry responsibility system ("3D" in short).
By 1984,1781 counties had completed the forestry "3D" process with ownership certificates issued governing a total of 1.45 billion mu (15 mu = 1 ha.) of mountain forests, of which 470 million mu were designated as privately managed mountains for about 57 million rural households. In consideration that forestry production has to be scale operations, the policy that "the tree belongs to he who planted it, and the jointly planted trees belong to the collective" was implemented and joint initiatives were launched in rural forestry management such as contract afforestation by special households, cooperative afforestation, joint afforestation, vigorous development of rural cooperative share-holdings forest farm and running of "green ventures". The cooperative Share-holding system turned out to be the most viable and fresh practice emerging from the reform process. Rural forest farms developed with new structure of benefit sharing. Between the mid-1980s and the present, the cooperative share-holding economy emerging from the forestry reform process has shaped new rural forestry' management entities and become an effective mode to realize public forest ownership. New ways of forestry development have been explored by trans-regional, multi-disciplinary and cross-ownership contribution of funds sites, labour, personnel, technologies and equipment, and optimal combination of production factors by means of share-holding cooperation, e.g.: converted shareholding and mutual share-holding.
Before the reform, input in forestry came mainly from the State and collective sources. The State forest relied purely on State investment and all profits were submitted; the collectively owned forests adopted the policy that work was done in forest farm while distribution was manipulated by production brigade. Along with the deepening of reform, the input distribution mechanism became inoperable. Such systems as compulsory labour input, accumulation labour input and diversified funding have strengthened the interior accumulation and capacity building of the forestry sector. The preliminary established mechanism of gross fund input features "labour" contribution by farmers, diversified funding sources and State subsidiaries. The principle of "distribution according to work" prevailed, with "other" production factors (land, funds, techniques, etc.) being considered in distribution. Use of forestry funds in the forestry sector has change from free " subsidy" into combinations of paid and free inputs. Discount loans for afforestation and share-holding afforestation have placed forestry funds on an upward trajectory which is snowballing, with value being added.
3.1.1.3 Reform of the Targeted Afforestation Responsibility System
Forestry is run by the whole society and the public is mobilized to carry out afforestation activities. Extensive implementation of the targeted afforestation responsibility system during their terms in office for leading officials is a successful policy with Chinese characteristics developed in China's forestry reform. On December 13, 1981, the Fourth Session of the Fifth National People's Congress adopted the Resolution on the National Compulsory Tree-planting Campaign. Subsequently, the State Council promulgated Regulations for the Implementation of the National Compulsory Tree-planting Campaign which stipulated by legislation the obligations a citizen must fulfil. The Directive on In-depth and Down-to-earth Implementation of the Territory Greening Campaign promulgated by the CPC Central Committee and the State Council in 1984 states: " the responsibilities of tree-planting and grass growing for a greener motherland shall be shouldered by the party committees and governments at all levels and by the top leaders of all organizations. ... This shall be a routine practice and a major component in assessment of the leading officials". A CPC Central Committee decision in 1987 reiterates:" the targeted responsibility system for forest protection and development shall be adopted for leading officials during their terms n office", and " decline and growth of forest resources shall be a major component in assessing the political achievements of the leading officials at the county level".
Subsequently, in the light of the spirit of the above mentioned policies, the planned targets for afforestation were set and responsibility contracts signed at all levels which required the leading officials themselves to run afforestation plots. Inspection and appraisal were carried out in light of appraisal indicators and with measures of award and penalty. The terms of office may change but not the indicators, and the number of staff may be reduced but not the afforestation task. By 1995, the annual rate of plantation establishment and mountain closure in China had reached about 5.3 million hectares and 3.67 million hectares respectively and the accumulated established forest area through compulsory tree-planting activities was about 33.33 million hectares with both its scale and pace of development ranking the first in the world. By now, 12 provinces/autonomous regions have reached their target of preliminary elimination of their barren mountains.
3.1.1.4 Outline of the Essential Points in State and Forestry Reforms in the Second Phase
In October 1984, the Third Plenary Session of the Twelfth CPC Central Committee adopted the Decision on Restructuring Economic System. At the end of 1991, priority of reform shifted from rural to urban areas which is marked by transformation of business management mechanism and change from profit submission to tax collection for State enterprises so as to make them relatively independent economic entities and a dominant force in the market. Policies have been made to promote market development, price reform and restructuring the macro-management system; substantial reduction of mandatory State planning; abolishment of the State monopoly for purchase of major farm produce and by products such as grain and cotton and increase market regulation of production materials. Efforts were made to further promote the open-door policy with the establishment of Hainan Special Economic Zone and opening up of Zhujiang River, Yangtze River and the Minnan Delta. During this period, the circulation system of wood and wood products was in a transition from the planned economy to the market economy, the international environment for forestry development became increasingly better and the forestry legal system was continuously unproved.
3.1.1.5 Reform of Timber Circulation System
Reform was made on timber circulation system so as to improve the multi-channel, multi-form market networks. Between the early 1950s and 1978, circulation of wood and major wood products was governed by the planned economic management system featured by State monopoly for purchase, sale and distribution. A CPC Central Committee decision in 1985 stated that State monopoly for timber should be abolished in south China's collective forest regions and timber price be open which pushed open the closed gate of the timber market. However, the incomplete policy and deviations in policy implementation resulted in illegal and indiscriminate logging in some places.
In this connection, the CPC Central Committee and the State Council jointly promulgated on June 30, 1987 the Directive on Strengthening Forest Resources Management in South China's Collective Forest Regions and Strictly Cracking down on Illegal and Indiscriminate Logging which stated that, in major timber producing counties, the forestry department shall be the only designated authority for timber purchase from mountainous areas. Basic stipulations were also made on strict implementation of the logging quota, protection by legal means of the ownership of state mountains and forests, improvement of the forestry production responsibility system, rectification of timber circulation channels and licensed logging, transportation and sales under the supervision of the forestry sector.
Meanwhile, the State forest regions in north China raised prices for wood products four times respectively in 1981, 1986, 1988, and 1990 and gradually expanded the ratio of their own sales. Non-wood forest products gradually entered the market trade. The proportion of State monopoly of timber declined from 80% of the total commercial timber down to 10% in 1993. By now, the forestry sector has established over 2,500 marketing units and purchase networks under the jurisdiction of prefecture and county forestry agencies, nearly 1,600 sales agents in forest regions; over 4,000 State forest-farms are both producers and sales agents themselves practising integrated business management. A number of timber trade fairs have been established in succession, helping the formation of the multi-element, multi-channel and multi-form timber circulation system dominating by the forestry sector and wood processing enterprises.
3.1.1.6 Reform of State Forestry Enterprises
The State forest regions are the major bases for wood production in China. Since the founding of the People's Republic of China in 1949, the State-owned forestry enterprises have provided the State with enormous volume of commercial timber and primitive accumulation. However, continuous social and population growth, historically pending issues in the administrative system, management mechanism and economic structure, and prolonged excessive logging of forest resources interacted to bring the State owned forestry enterprises gradually into the resource and economic crises in the early period of the reform process. It is within this context that the Ministry of Forestry proposed in 1979 that the excessive logging should be checked and efforts should be made to develop new forest regions, speeding up afforestation and tending, and giving priority to comprehensive utilization and diversified operations. Subsequently a new pattern of silvicultural production, forest products industry and diversified operations took shape.
Between 1985 and 1987, a leader responsibility system was promoted to practice the contracted responsibility system for the quota submission of profits by the enterprises to the government's financial department and trials on forestry shareholding system were also practised. In the late 1980s, the State adopted a series of supporting policies such as reduction in timber production by adopting the quota logging system, gradual decrease in the quota of timber demand in the State's plan, adjustment of timber prices, increase in the proportion of afforestation fund and the discount loans needed for diversified operations in the forest industry, exemption of levies and taxes on some forest products and increase of investment into forestry. These policies helped mitigate, to some extent, the crises facing forestry enterprises. Due to sluggish adjustment of economic structures, slow reform of the economic management system and management mechanism, the pending problems were not solved fundamentally. In 1991, in accordance with the national guideline of "giving priority to the large enterprises and letting go the small ones" and revitalize the large and medium-size State owned enterprises, the government incorporated the four large State owned forestry enterprises in north-east China and Inner Mongolia (including 84 forestry bureaux) into the first list of the 50 trial enterprise groups in order to deepen the reform on State Forestry enterprises and establish modern forestry enterprise system and new economic operational mechanism suitable for the socialist market economic system.
3.1.1.7 Reform of the Forestry Legal System
Under the conditions of the socialist market economic system, it is a must to improve the legal system so as to safeguard forestry development. Administrative and legal means are required to supplement the economic mean in use. In order to further strengthen forest resource management and separate administration from commercial activities, the Chinese Ministry of Forestry, since 1989, has dispatched forest resource supervisory organizations to major forestry provinces/autonomous regions to supervise consumption and growth of State forest resources, forestry policy implementation and resource management, and the forestry administrations in these provinces/autonomous regions have sent forest resource supervisory organizations to forestry bureaux so that an up-down forest resource supervisory and management system has taken shape.
In 1991, the Chinese forestry sector experienced the transition from applying logging quota system to commercial roundwood only into the new practice of overall control of forest resource consumption. China has made unremitting efforts to enact and improve forestry laws and regulations with regard to property right management, value appraisal, examination and approval and contract notarization so as to standardize the transfer, lease and mortgage of and share purchase with the property rights of forest resources to guarantee value adding through the circulation and conversion of the forest resource assets.
The development of the socialist market economic system is a process to continuously develop and improve behavioural norms and the legal system. It has become the conscious action of the forestry sector to unify forestry reform, opening to the outside world, sustainable development and forestry legal system development, and to integrate reform decisions with legislative guarantee. The Forest Law of the People's Republic of China promulgated officially by the National People's Congress in September 1984 is the fast basic forest law of its kind ever since the founding of the people's republic of China in 1949. In November 1988, the Law of Wildlife Conservation of the People's Republic of China was promulgated. During the Eighth Five-Year Plan period, along with the deepening of reform, the legislative development underpinned by the. Forest Law of the People's Republic of China and the Law of Wildlife Conservation of the People's Republic of China entered into a period of improvement ad supplementation.
By September 1994, China had promulgated 4 forestry laws/legal documents, 9 forestry administrative regulations, over 60 sectors rules and more than 200 local forestry by-laws and local governmental regulations which formed the basic framework of forestry legislation. It turns out to be true that forests are now managed with legal means and there are laws to abide by and regulations to follow. The second five-year publicity programme on forestry legislation has been successfully completed and the law enforcement supervisory system been established.
3.1.1.8 Reform of the International Forestry Cooperation System
Along with the increasing trend of internationalization of economic and technological development in the world, China's forestry sector has adopted the open-door policy and carried out extensive inter-governmental, inter-sector and non-governmental economic and technology cooperation as well as personnel training. Priority Fields and priority development projects for international forestry cooperation have been defined in a bid to attract foreign investment and expand foreign trade in forestry. A multi-channel, multi-level and multi-form, bilateral and multilateral cooperation framework has taken shape.
3.1.1.9 Development of Forestry Reform Experimental Zones
As a major component of the rural reform, the Chinese ministry of Forestry has approved, since 1987, the establishment of 10 forestry reform experimental zones of different types encompassing 96 counties/cities of 9 prefectures in 10 provinces/autonomous regions and one forest industrial bureau covering some 260,000 square kilometres. The pilot forestry reform experimental bases are allowed to break some of the current policies and systems so that reform in the experimental zones may experience breakthroughs and practice in advance. The experimental zones have set up independent organizations and formulated standard procedures for them in six phases: the initial investigation and study plan, the design plan, evaluation and approval, personnel training, plan implementation and monitoring, summary and appraisal zones. In consideration of the pending issues in the forestry economic practice, a group of projects have been selected closely related to medium and long term decision making to conduct reform experiments in such fields as forestry management system, forms of economic organization for grass-roots cooperation, business models, development of the circulation market of forest products, development of forest land system, forest resource asset management, management system development and establishment of modern forestry enterprise system. These experiments have provided quite systematic and practical evidence for the formulation of forestry policies.
3.1.2.1 Outline of the Essential Points in State Reform and Forestry Reform in the Third Phase
Since 1992, China's reform of the economic system entered into the third and key period. The Decision on Several Issues Concerning Establishment of the Socialist Market Economic System was adopted by the Third Plenary Session of the Fourteenth CPC Central committee in 1993. In the light of this guideline, reform in China shifted its focus from breaking the traditional system to the establishment of a new one; from policy adjustment to policy innovations; from specific reforms to comprehensive and integrated reform; from emphasizing key breakthroughs to the combination of overall advancement with key breakthroughs. The supplementary reform of taxation, finance, prices and foreign exchange undertaken in 1994 pushed implementation of the open-door policy and development of the socialist modernization into a new period. During this period, China's forestry entered into the comprehensive and supplementary reform period.
In August 1995, the State Commission for Restructuring the Economic System and the Ministry of Forestry jointly promulgated the General Outline for Restructuring Forestry Economic System which explicitly proposed to establish a forestry economic system both in line with the socialist economy and reflecting the characteristics and needs of forestry, change the mode of forestry economic growth, develop the forestry productive capacity, establish in a phased way a fairly completed forestry ecosystem and relatively advanced forestry industrial system in China, and achieve the targets stipulated in the Outline of the Ninth Forestry Plan and the Plan to the Year 2010.
3.1.2.2 The Priorities for China's Forestry Reform and Policy Implementation During the Ninth Five-Year Plan Period
3.1.2.2.1 Implementation of the Differentiated Forestry Management Strategy
First of all, the protection forest which plays a major role in territory security, biodiversity conservation, agro-ecosystem conservation and environmental protection in both urban and rural areas, shall be categorized as forest for public benefit with relevant economic policies to follow, On one hand, the forest for public benefit shall be taken as a public welfare undertaking of the State with inputs solely from the government through financial arrangements at all levels in light of their jurisdiction. On the other hand, in accordance with the principle that he who benefits shall pay, input shall be materialized with compensation of the beneficiaries. The compensation mechanism for forest's ecological benefits should be established to create in a phased way a favourable input and output circulation for the forest for public benefit. The commercial forest shall be market oriented in optimizing resource allocation structure and efforts be made to change the mode of economic growth, increase the quality of forest growth, and in the light of the development needs in forest products industry, achieve the base production and commercialization for oriented cultivation of forest resources. It is intended to practice high input, high output, high technical content, intensive and grouped management. The two major forestry systems shall be developed in line with the law of nature and the laws of economy to realize the successful matching of the forestry economic system and the market economic system. Differentiated forest management is a basis for the realization of fundamental changes in economic structure and the mode of economic growth, and a fundamental measure for raising the quality of economic growth, and a fundamental measure for raising the quality of economic growth in forestry. It may lead to great changes in a series of forestry management strategies with regard to forestry management system, mode of management, investment channel, industrial policies, and administrative laws and regulations.
3.1.2.2.2 Forestry Asset Management
Under the market economic conditions, the forest resource must be taken as a dynamic asset which could keep and add value through legal and commercial exchange. There will be establishment of forest resource administration and management mechanism, the forest asset supervision and operation mechanism, and continuous improvement of legal stipulations shall be a critical step in deepening reform during the Ninth Five-Year Plan period.
3.1.2.2.3 Adjustment of Forestry Industrial Structure. Improvement of Forestry Industrial Policies and Adoption of the Strategy of Selecting the Best and Supporting the Strong
Adjustment of forestry industrial structure, improvement of forestry industrial policies and adoption of the strategy to select the best and support the strong. The pioneer and highly efficient fields which provide strong support to overall capacity building of forestry shall be taken as the priorities for development in the forest products industry. The promising enterprises shall be encouraged to annex small and weak ones or control or purchase shares of other enterprises to promote the appropriate flow and transfer of the State forestry assets into high-benefit fields. Manipulation of the stock and wise use of the increased benefits shall help realize restructuring forest assets and forestry enterprises.
3.1.2.2.4 Reform towards a Modem Forestry Enterprise System
Acceleration of the change in the management mechanism of large and medium State forestry enterprises to set up a framework of modern forestry enterprise system by the end of this century shall be a priority of reform; it will be a difficult task to fulfil. At present, efforts are being made to set up 4 large forest industrial groups in the State forest regions in north-east China and Inner Mongolia. The main components of forestry property right shall be defined to promote asset management and administration of the forest resources. Endeavours shall be made to solve the practical problems related to enterprise administration and management mechanisms assets and liabilities, and reform on three systems. This is critical to the realization of "the two fundamental changes" in forestry during the Ninth Five-Year plan period.
3.1.2.2.5 Implementation of the Integrated Forestry Development Strategy in the Mountainous and Sandy Areas
Efforts shall be made to integrate forestry industrial development with settlement of the rural, agricultural and farmer's problems, reduction of the frequency of such natural calamities as drought, flood, wind and sand, environmental improvement in the poverty-stick areas, and the local initiatives of poverty eradication for a better life. By now, over 50 pilot mountain development counties have been set up.
3.1.2.2.6 Others
Efforts shall also be made to establish and develop timber and forest products markets, improve the socialized service system, deepen reform on forestry scientific, technological and educational systems. In light of the special features of forestry, the guideline for reform on the scientific and technological system: "assuring the service of key research staff and decentralizing related institutions" will be implemented. A group of key laboratories will be designated, large numbers of academic and technical pioneers trained to assure the continuous service of key research staff. The research, development and extension institutions providing direct service for forestry production and development will be decentralized and revitalized in a bid to establish socialized service system for forestry science and technology.
Educational structure shall be optimized to give vitality to running educational institutions. Endeavour shall also be made to seek for diversified means of jointly running educational institutions, to make systematic reform on subject structure, curriculum set-up, contents and means of teaching. The key universities and key majors shall be enhanced. Priority shall be given to vigorous development of vocational education, adult education and applied techniques training for forest farmers and to the integration of teaching, research and production.
China will further its opening to the outside world, take active part in activities related to Agenda 21 and implement the Forestry Action Plan for China's Agenda 21 which has been formulated. Priority shall be given to the establishment and improvement of the forestry legal system which composes of interlinked administrative laws and regulations and local by-laws and regulations covering such fields as forestry sectoral management, and protection, cultivation and wise use of forest resources and wild fauna and flora resources.
3.2.1 Sustainable Development Strategy for Forest Resources
3.2.2 Strategy for Comprehensive and Sustainable Mountainous Development
3.2.3 The Sustainable Development Strategy to Combat Desertification
Sustainable development has become a general consensus of the human society. Facing the 21st century, the development of China's forestry has to conquer problems and difficulties that emerge on the road to development, grasp opportunities and realize the Sustainable development of China's forestry. The strategy for sustainable forestry development is a development of the strategy for China's sustainable development as formulated in China's Agenda 21 and one of the cores of realizing the overall strategic goals of China's sustainable development. The purpose of the sustainable forestry development strategy is to implement the principle of sustainable development in the whole process of China's forestry industry practice, realizing sustainable forestry development. Thus, the sustainable development of China's forestry has to realize the sustainable utilization of forest resources and the harmony between cultivation of forest resources and environmental protection, while enhancing its capability of coping with rapid economic growth. The strategic goal for China's sustainable forestry development is to establish a relatively complete forestry ecological system and a relatively developed forestry industrial system, satisfying the need of China's economic and social development for timber and forest products.
The sustainable forestry development strategy will rely on development of education, science and technology, with an emphasis on establishing a technical system for sustainable forestry development. The implementation of the sustainable forestry development strategy needs to have extensive social participation, public participation, stable and reliable economic input, thus the establishment of a social guarantee system and an economic guarantee system for sustainable forestry development is an important component of the sustainable forestry development strategy.
China's sustainable forestry development is based on the sustainable development of forest resources. The present forest resources situation and eco-environment calls for emphasis of forestry development and environmental development to be active cultivation of forest resources. By the end of this century, a relatively complete forestry ecological system and relatively developed forestry industrial system will be initially established. It can be divided into 5 aspects in details:
· speed up forest tending and development of timber forest bases. China has scarce forest area, with low quality and productivity of forest stands. Only conscientious strengthening of tending and management of middle-aged and young forests can further increase the quantity and quality of forest resources; speeding up the development of fast growing and high yielding forest bases is an important strategic measure to increase timber stock volume, relieve the pressure on public welfare forest resources, mitigate the imbalance between supply and demand of timber;· speed up the development of shelterbelt programmes. These shelterbelt programmes include the "Three-North" (Northeast, North China, Northwest) Shelterbelt Development Programme, the Shelterbelt Development Programme along the Middle and Upper Reaches of Yangtze River, the Coastal Shelterbelt Development Programme, Taihang Mountain Greening Programme and Plain Afforestation Programme. Taking the development of shelterbelts as a key component of overall forestry development, on the basis of conserving existing protection forests, a variety of afforestation methods will be adopted to increase the proportion of protection forests. The goal to be realized by the end of this century is that the area of protection forests will take up 30% of the total forest area;
· accomplish the tasks of combating desertification and afforestation. On the basis of actually conserving existing vegetation, 47.41 million ha. of desertified land will be treated by stages;
· develop economic forests and fuelwood forests where appropriate; and
· develop forest product industries, especially the development of wood-based panels industry, sawing industry, forest chemicals industry, wood pulp and paper making industry, wood chips industry and bamboo industry.
China is a mountainous country with scarce forest resources. The poverty problem of China is mainly with poverty stricken mountainous areas. The mountainous areas have rich forest plant resources, so the implementation of comprehensive development with a focus on forestry is decided by the characteristics of resources in the mountainous areas, and is an inevitable choice for economic development and poverty alleviation of mountainous areas.
Development of mountainous areas should be based on mountain resources, combining exploitation with sustainable development, economic benefits with improvement of the quality of eco-environment, woody forest resources with non-wood forest resources, development with poverty alleviation and with making mountain farmers richer, doing rational planning and classified implementation. The main issue is the development of "high yield, high quality, high efficiency sustainable forestry", with economic forests as a breakthrough, establishing a group of famous, special and quality economic forest bases, vigorously developing forests, fruits, bamboo, medicine, grass, flowers where appropriate, promoting integrated management such as the combination of forests with grain, animal husbandry, raising, medicine, mines, tourism, and the development of pollution free "green food". Poverty stricken counties will give priority to and lay emphasis on the development of planting, raising and processing industries which require little investment, produce quick results and high benefits, and directly help to solve people's problems of poverty and not having enough food or clothing.
Desertification is a major ecological problem facing China. The Chinese government attaches great importance to combating desertification and has decided to put more efforts into the anti-desertification drive, including integrating combating desertification in the national economic and social development plan, establishing relatively complete soil and water conservation and combating desertification research and management agencies in the central government and locally.
The State Council held two National Anti-Desertification Working Meetings respectively in 1991 and 1993, approved the Outline of Planning for the National Programme to Combat Desertification between 1991 and 2000 and the Remarks on Policy Measures to Combat Desertification. On October 14, 1994, the Chinese government signed the UN Convention to Combat Desertification. In order to do a better job in China's efforts to combat desertification and to correspond to the Convention, the China National Committee and Its Senior Advisory Group to Implement the UN Convention to Combat Desertification were set up by the State Council, the National Greening Committee and the Ministry of Forestry.
The National Programme to Combat Desertification started in China's 27 provinces (autonomous regions) comprehensively in 1992. The plan is to accomplish the combating of desertification and ecological construction tasks of treating 47.41 million ha. of land with 60 years of efforts. This programme lays emphasis on the treatment of desertified land, carries out integrated treatment focusing on the utilization of sandy area resources and the expansion of China's farmland area, to gradually reduce the area of desertified and wind eroded land, and establish an anti-desertification engineering system with the organic combination of prevention, treatment and utilization.
3.3.1 Objectives for the Development of Two Major Forestry Systems
3.3.2 Objectives of Forestry Economic Structural Reform
3.3.3 Major Indexes of Forestry Development
Taking the goal of sustainable national economic and social development as the point of departure, corresponding to the present situation of forestry development, problems and contradictions facing the country, and requirements for forestry development, the overall objectives of China's forestry development and reform are fixed as:
By year 2000: lay a foundation for the initial establishment of a relatively complete forestry ecological system and a relatively developed forestry industrial system with forest cover reaching 15.5%, the forestry industrial growth rate 12% and the total output value of forestry industries reaching 304 billion yuan. The ten major forestry ecological programmes will form the basic framework of the ecological system, initially controlling the situation of overall eco-environmental deterioration, and start to enter the stage of smooth development, guaranteeing the stable and high yield of agriculture and animal husbandry, and the forestry role in conserving water contributes to the goal of increasing grain yield by 50 billion kg; the forestry industrial structure is greatly improved, the pace of shifting of economic growth mode from focusing on extensive management to focusing on intensive management is greatly accelerated, the comprehensive economic strength of forestry and the self development capacity is greatly strengthened; the comprehensive mountainous forestry development achieves periodical results, ensuring the realization of the goals of the National 87 Poverty Alleviation Programme, speeding up the process of poverty alleviation and making rural areas better off.
By year 2010: initially establish a relatively complete forestry ecological system and a relatively developed forestry industrial system. The forest cover should reach 17.5%, the growth rate of forestry industries 13% and the total output value of forestry industries 1,000 billion yuan. The forestry ecological programme forms a certain scale, starting to exert comprehensive functions of obviously improving the eco-environment, which can basically meet the needs of national economic development and people's lives, forestry makes a major contribution to the economic development of mountainous areas, promoting the coordinated development of regional economy; the forestry industrial structure becomes more and more optimized, the coordinated development of the primary, secondary and tertiary industries has achieved notable benefits; the forestry comprehensive strength almost reaches the level of countries with medium forestry development level.
By year 2000: initially set up a basic framework of forestry economic system which is in line with the requirements of a socialist market economy, reflects the characteristics of forestry, the situation with China and with China's forestry. Rationalize forestry production relations through strengthening the force of forestry reform, creating conditions for the establishment of the two major forestry systems.
By year 2010: establish a relatively complete forestry economic system. Further realize the standardization and legalization of the forestry economic management system and running mechanism, further optimize distribution of resources, realize sustainable forestry development.
(1) Forestry Ecological System Development Indexes (1996-2000). The utilization rate of forest land increases from the present 51% to about 60%; the forest cover increases from the present 13.92% to 15.5%; the standing stock volume (including Taiwan Province) increases from the present 11.7 billion cubic meters to 12.66 billion cubic meters; the area of treated desertified land reaches 3.43 million ha., 2.2% of the total area; treated area suffering from soil and water erosion reaches 21.37 million ha., 12% of the total area; all plain farmland have shelterbelt networks; the area of all types of nature reserves (including wetland type) increases from the present 51.26 million ha. to 60.59 million ha., taking up 6.31% of the country's territory.
(2) Forestry Industrial System Development Indexes (1996-2000). The total output value of forestry industries increases from the present 180 billion yuan to 304 billion yuan; the growth rate of forestry industries reaches 12% (15% with mountainous areas); the contribution rate of scientific and technological progress to forestry economic growth doubles, reaching 40%; the contribution rate of forestry to the increase of mountainous farmers' income reaches about 50%; resettle 15 million rural surplus labourers through comprehensive mountainous forestry development; the comprehensive utilization rate of timber increases from the present 40% to 60%; the unit stock volume increases from the present 89 cubic meters per ha. to 96 cubic meters; the growth rate of forest trees increases from the present 3.89% to 4.3%; the stock volume of timber increases from the present 6.74 billion cubic meters to 6.94 billion; the total output of timber (including commercial timber, timber for farmers' own use, and for propagation) increases from the present 126.88 million cubic meters to 138.78 million; the output of wood based panels increases from the present 6.5 million cubic meters to 10 million; the total production of paper and paperboard reached 30 million hectares, of which the total output of pulp and paper in the forestry sector increases by 1 million tons.
(3) Medium and Long Term Forestry Development Indexes (Year 2010). Forest cover reaches 17.5%; the standing stock volume (including Taiwan Province) reaches 13.96 billion cubic meters; area of nature reserves of various types (including wetland type) reaches 70.68 million ha., taking up 7.36% of the country's territory; the total output of timber reaches 159 million cubic meters; the comprehensive utilization rate of timber reaches 80%; the total output value of forestry industries reaches 1,000 billion yuan; the supply and demand of timber and major forest products initially strikes a balance; the contribution rate of scientific and technological progress to forestry economic growth reaches 60 %.
3.4.1 Investment Policies
3.4.2 Policies on Science and Technology
3.4.3 Policies on Forest Products Industry
3.4.4 Structural Reform Policies
3.4.5 Policies on International Exchange and Cooperation
Forestry is a public welfare undertaking of the whole society, being one of the major industries of national economic and social development. Practices over the years reveal that the development of forestry has to rely on the whole society. With the intensifying of reforms in the investment and planning systems, the division of responsibilities and rights between the central and local governments has become clearer. Local governments should incorporate the development contents of forestry and especially ecological public welfare forestry into their plans of national economic and social development, providing support from corresponding financial and state budgets and various investment channels, to ensure necessary investment strength.
With regard to the development of forest bases with various special functions and the utilization of forest resources, it is suggested that channels for forestry to absorb social funds and input of social force should be broadened. It is also necessary to actively and fully utilize these two types of resources in the future development, opening up two markets, paying attention to the absorption of funds and technology from foreign governments, international financial organizations, foreign enterprises and companies, speeding up the development of forestry industries.
The Chinese government will adopt different investment channels according to different types:
· Type 1, development of the ecological system: including compulsory tree planting by all people; development of shelterbelt programmes; development of ecological type state forest farms and nurseries; the programme for combating desertification; development of nature reserves, conservation and utilization of wild fauna and flora, etc.. This type of development is mainly for maintaining and improving eco-environment, the major benefits being reflected in ecological benefits and social benefits, the channel for central government investment should still focus on appropriation within the state financial budget, supplemented by comprehensive agricultural development funds and food for work fund.· Type 2, development of plantations: tending of middle-aged and young forest stands; development of fuelwood forests; development of economic forests; cultivation of bamboo forests, etc.. This type of development can basically produce some economic benefits, with still some differences among themselves, thus it is suggested that aerial sowing and mountain closure can be adopted as a subsidiary investment, while maintaining the channel of appropriation within the state financial budget; timber forest bases, tending of middle-aged and young forest stands, fuelwood forests and cultivation of bamboo forests will all use infrastructure funds in the budget; industrial raw material forests with short rotation periods and economic forests are industries with the best economic benefits in the forest establishment business, so this part of investment mainly depends on the expansion of the scale of comprehensive agricultural development investment and loans from non-commercial banks. A certain amount of infrastructure funds in the budget will be provided for a few poverty stricken areas with revolutionary traditions and minority nationalities.
· Type 3, development of felling and transportation of timber: including development of forest areas (including transportation and energy construction); renovation and expansion of old bureaux (later stage forest farm construction etc.). This type of development is state basic industries with great social significance, yet with limited direct economic benefits, thus it needs to have the political investment from the state.
· Type 4, development of forest product industries: including the development of various types of forest product industries; technical renovation and expansion of forest machinery plants; construction of the forest products market; development of forests in overseas countries etc.. This type of development is an industry with relatively high economic benefits in the forestry sector, the major part of investment can be obtained from using loans from non-commercial banks.
· Type 5, social development of state owned forestry: including the social development of forest industrial enterprises of key state forest areas, state forest farms and nurseries etc.. This type of development belongs to problems inherited from history, yet is an important matter concerning the survival and development of state owned forestry. During the Ninth Five-Year Plan period, this part of investment should come from appropriation of state budget and financial expenditure. Governments of provinces and autonomous regions of the location should provide support in policy and funds actively.
· Type 6, diversified management of forest industries: being an important measure for state forest industrial enterprises to cast off "two crises", wisely utilize forest resources, create new employment opportunities, and develop towards a favourable cycle. The investment channel used in the Eighth Five-Year Plan period (forest industry discount loan) should be maintained, and the scale should be increased to an appropriate extent.
· Type 7, development of forestry infrastructure: including the development of forestry scientific research (including technical extension stations); development of forestry education; development of forestry law enforcement system; development of forest pest and disease control; development of forest tree seedlings; development of forestry working stations; development of a monitoring system for forest resources, forest environment, wild fauna and flora, desertification; development of a forestry information system etc.. This type of development is a basic condition for forestry development and provides basic guarantee of success. Thus, the investment is suggested to be solved by appropriation from state financial budget.
· Type 8, other types of development in the forestry sector: including the development of forestry flowers; the development of forest parks and forest tourism; forestry diversified management etc.. Apart from forestry diversified management which goes on applying for discounted loans from agricultural banks, all can apply for certain subsidies through infrastructure funds in the state budget.
The focuses of forestry science and technology development during the Ninth Five-Year Plan period are: promote a series of techniques of 10 big groups; focus on six major techniques which need to be solved urgently. These techniques are: the development of forestry production (such as the establishment of shelterbelts), integrated treatment of desertification, forest conservation, resource cultivation, high yield of economic forests and processing of forest products; actually solve 200 important scientific and technological difficulties; introduce 200 advanced techniques from foreign countries; pay attention to basic research and research on advanced and new techniques.
Strengthen development of infrastructure for scientific research. During the Ninth Five-Year Plan period, efforts will be made to set up 2-3 national level key laboratories and 5 national or line engineering technology centres apart from actively developing ministerial level key laboratories; stabilize and establish over 20 stations for positioning research of forest (wetland, desert) ecosystems according to climatic zones over the whole country; set up 20 fixed research bases for key forestry research institutes to carry out long term silviculture experiments, striving for the enhancement and modernization level of scientific research instruments and means; emphasize the dissemination and utilization of scientific and technological information, strengthen the development and management of science and technology books, information, important publications and data base, promoting networking of science and technology information.
Consolidate and improve the forestry scientific research system, science and technology extension system, experiment and demonstration system and technical supervision system. Apart from strengthening the efforts of ministries and provinces jointly setting up forestry technical extension stations, local governments should also collect funds using various forms and channels to be used in the development of extension stations, to form a forestry technical extension network with four levels of forestry technical extension agencies (ministry, province, prefecture, county) as the main body by the year 2000; improve the development of forestry experiment and demonstration system on the basis of consolidating present experimental demonstration zones, to establish 7 prefecture level technical development experimental demonstration zones and 60 demonstration counties of developing forestry through science and technology by the year 2000; organize the implementation of Mountain Vitalization Programme, to speed up the transformation of scientific and technological achievements and the process of helping mountainous areas, farmers and counties to get better off.
By the year 2000, the contribution rate of scientific and technological progress to forestry economic growth will double relative to the present level of about 20%; model areas and experimental demonstration zones exceed 50%; the transformation rate of scientific and technological achievements increase from the present 34% to 50%; the technical level of major fields reach the level of advanced countries at the end of the 1980's. By the year 2010, the contribution of scientific and technological progress to forestry economic growth and overall scope and achievements both scientific and technological should increase further by a large extent relative to the situation in year 2000.
Forest products industry are the leading industries of forestry; the major aims will include readjusting forestry industrial structure, promoting high efficiency of industry, increasing the economic benefits of forestry industries, especially the alleviation of "two crises" (i.e. economic and resource) with state forest areas and the fostering of new economic growth points; at the same time, fast growing and high yielding forest resources can be fully utilized, promoting the development of afforestation and high yielding forests towards fixed-orientation with bases, commercialization and industrialization, solving the contradictions between forest resources cultivation and utilization.
Industry of pulp and paper making. The goals of the planning for China's pulp and paper making industry by year 2000 are: the production of paper and paperboard to reach 30 million tons, of which 25 million tons are domestically produced (3.32 million tons being wood pulp)7, the proportion of wood pulp increase from 14% to 18%, the per capita consumption level increase from the present 23.4 kg to 26 kg. In order to realize these goals of development, the following policies will be implemented:
(1) Lay emphasis on the development of key enterprises. During the Ninth Five-Year Plan Period, key enterprises are required to gradually realize the goal of big scale operation and modernization. The goals for the development of key enterprises are: by year 2000, the number of pulp and paper making enterprises with an annual production capacity beyond 200,000 tons reach 8, that of enterprises with an annual production capacity between 100,000 - 200,000 reach 20. The forestry sector will concentrate on the development of 6 large scale paper mill projects, with a newly added production capacity of 960,000 tons. Efforts should also be made to carry out re-establishment and reform of small scale enterprises.(2) Adjust the structure of raw materials. Due to the fact that the major reason obstructing the development of paper making industry towards big scale operation and the development of products towards higher grades is the small proportion of wood as raw materials, an integration of forests and the paper making industry will be emphasized during the Ninth Five-Year Plan Period. Apart from better utilization of three types of left over materials in forest areas (poor quality wood, small diameter wood, and the recovery of waste paper), emphasis should also be laid on the vigorous development of forest resources for paper making, trying to realize the goal of establishing bases for the supply of raw materials for paper making.
(3) Optimize the structure of products. The purpose of such an effort is to improve the quality and grade of products, increase the variety of products, and appropriately develop short-line products, such as offset printing newsprint, offset printing magazine paper, kraft paperboard, high grade coated paper, information paper, packaging paper, paper for hospital use and medium and high grade paper for domestic use, etc..
(4) Renovate and improve techniques and facility levels. In order to adapt to the diversified characteristics of raw materials for paper making, efforts will be made to vigorously research and develop techniques on utilization of cypress, birch and eucalyptus etc. for the production of chemical heat ground mechanical pulp and mechanical pulp to cope with the techniques of newsprint, cultural printing paper and paperboard. Efforts will also be made to vigorously research and promote the use of chemicals for paper making, develop de-inking techniques for wastepaper processing, and techniques and facilities for waste water treatment.
7 But see Table 30.
The planned production volume of paper and paperboard in China for year 2000 is 30 million tons, with a total consumption of 25.11 million tons of pulp, of which 23.91 million tons is domestically produced, 1.2 million tons of wood pulp imported. Of all the domestically produced pulp, the proportion of wood pulp will increase from 10% to 13.2%. By then, the proportion of different types of pulp will be as shown in Table 30:
Table 30 - Prediction of the Consumption of Pulp Raw Materials by Year 2000
|
type of pulp |
consumption of pulp (1,000 tons) |
proportion % |
|
wood pulp |
4,520 |
18 |
|
of which: produced domestically |
3,320 |
13.2 |
|
imported |
1,200 |
4.8 |
|
reed pulp |
1,260 |
5 |
|
bagasse pulp |
920 |
3.7 |
|
bamboo pulp |
470 |
1.9 |
|
straw pulp |
8,400 |
33.4 |
|
waste gunny and cotton pulp |
1,000 |
4 |
|
waste paper pulp |
8,040 |
32 |
|
others |
500 |
2 |
|
total |
25,110 |
100 |
According to the national plans for the development of pulp and paper making industry, the production capacity of paper and paperboard by year 2010 will reach 40 million tons, which will consume 36.8 million tons of pulp. According to the requirement that 22% should be wood pulp, the domestically produced wood pulp by then will be 8.1 million tons, while imported pulp will be 1.5 million tons.
Wood-based panel industry. Readjust the product composition and regional distribution of wood based panel industry. The development focus for wood based panel industry is on MDF, structural particle board, bamboo plywood and other new varieties of an appropriate scale. It is expected that 520,000 cubic meters of production capacity will be newly created. Particle board and hard fibreboard industries will improve techniques through enlargement of the raw materials provision scope, to expand the scale, treat pollution, improve product quality and functions (such as combustion separation, damp proofing, anti-borer), intensify the level of processing and appropriately develop mould pressing products.
The development of plywood industry should expand the scope of tree species under possible conditions of raw material supply, highlight the advantages of this board type, and lay emphasis on the development of sliced veneer.
Fully utilize bamboo resources, promote the production of products such as bamboo plywood, bamboo composite board and bamboo chipboard, increase the production capacity of bamboo based panels by 300,000 cubic meters through technical renovation; increase the production capacity by 200,000 cubic meters through newly developed projects.
Forest chemical industry. At present, the output and export volume of China's rosin industry both rank high internationally, yet many problems still exist with this industry such as scattered distribution, small scale, backward techniques, low processing levels and incompatibility with raw material bases, etc.. Thus, the following efforts should be made: (1) vigorously carry out reforms of enterprises producing rosin and turpentine, enhance the grade of products and intensify processing; (2) readjust the enterprise layout through the implementation of industrial policies to realize proper scale management. In principle, no new plants will be built during the Ninth Five-Year Plan period; (3) promote some sino-foreign cooperative projects combining forests with deep processing of products. By the year 2000, the output of rosin would remain at around 420,000 tons, with over 250,000 tons of rosin and further-processed products exported. Properly develop the production of activated carbon in response to the demand of market; stabilize the yield of products such as shellac and extracts. The main focus will be the improvement of product quality, further processing, development of products range, establishment of raw material sources, and creating new ways of development; develop industrial rosin industry with specific emphasis.
Restructure and reactivate the sawmilling industry. Readjust layout, reduce the proportion of urban sawing; promote technical renovation focusing on timber recovery and quality of sawntimber, as well as further processing (such as finger joint timber and laminated veneer lumber). Actively promote processing of sawntimber in forest areas, kiln drying and wood preservation locally. The rate of kiln drying of sawntimber should increase from the present 20% to 50%. Apart from sleepers which need to be preserved, pit props and other types of timber that need preservation should adopt preservation measures.
Forestry is a basic industry and social welfare undertaking as well as a special trade in the national economy with three major ecological, economic and social benefits, combining the primary, secondary and tertiary industries. With the establishment of China's socialist market economy, a forestry economic system should also be established in the forestry sector which not only is in line with the socialist market economy, but also reflects the characteristics and requirements of forestry, thus fully exerting the irreplaceable functions of forestry in social development, national economic development and ecological development, promoting the sustainable and highly effective development of China's forestry. Section 3.1.1 gave fuller details on reforms.
The 1990s are a crucial stage for the realization of the second step strategic goals of China's modernization, and for forestry reform and development. On the whole, it is intended to set up the basic framework of the forestry economic system under conditions of socialist market economy. Specifically, the objectives and tasks of forestry reforms by the end of this century are to:
· establish a silviculture system which adopts classified management and scientific management;· establish a assets management system with an emphasis on the supervision, management and running of forest resources and capital;
· establish a forestry industrial system with forest resources cultivation as a basis but with forest products industry as a focus and the coordinated development of primary, secondary and tertiary industries;
· establish an integrated, open, competitive and orderly forestry market system under the macro control of the state;
· establish a forestry macro control system with forestry funds as a guarantee, including economic means such as taxation, credit and loan, investment, price and industrial policies etc.,
· and other legal and administrative means.
China needs to further open up to the outside world, strengthen international exchange and cooperation in response to the establishment of the socialist market economy system and the development of international economic situation. Promote the advancement of forestry science and technology through international cooperation, functioning as a bridge for the development of forestry and foreign trade. Comprehensively promote international cooperation and exchange in the field of science and technology through the adoption of various forms such as bilateral, multilateral, governmental, non-governmental contacts and international meetings, expanding the scope of cooperation, strengthening exchange of students and scholars, joint development, research and production etc..
China has successively signed or joined some bilateral agreements and important international conventions in the field of environment such as United Nations Framework Convention on Climate Change, the UN Convention on Biological Diversity, the UN Convention to Combat Desertification, the Convention on Wetlands of International Importance Especially as Waterfowl Habitat (the Ramsar Convention), the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Convention on World Natural and Cultural Heritage, and the International Tropical Timber Organization. China has the responsibility of fulfilling its international obligations. China has formulated priority development fields and projects for international forestry cooperation and also actively participates in relevant international or regional activities.
While going on emphasizing high level exchanges and cooperation, major efforts should also be placed on non-governmental contacts, improving multi channel, multi layer and multi form cooperation patterns; strengthen exchange and cooperation in the field of science and technology, promote the commercialization, industrialization and internationalization of scientific and technological exchange achievements with cooperation in science and technology as a leading factor, taking into account the advantages, scientific, technological and economic characteristics of forestry with different countries; actively developing and promoting the cooperation among science, industry and trade; strengthen survey and research, exchange according to need, emphasizing actual results. Further strengthen the absorption and digestion of introduced technology, conscientiously manage foreign funded projects.
