Unasylva 182 * Matrix of cross sectoral linkages

Matrix of possible impacts of other sectoral policies on forest development

Macro-economic policies: fiscal, monetary, privatization and public expenditure

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

Economic integration Concerted policies and investment programmes Greater national and international flow of investments in forest development; increased competition and trade in forest products

Greater emphasis on quality of life Development of life indicators (health, environment, education, culture, etc.) Increased demand for natural forest conservation in landscape, green belts of local species, recreation, urban forestry

Greater emphasis on sustainable development Regulatory and economic instruments to promote economic and environmental sustainability in all sectors Changes in silvicultural practices; emphasis on use of renewable resources; reduced waste and more recycling

Monetary and credit policies Credit allocation and subsidies, interest rates Discount rates, subsidies, investment capacities determine the competitiveness of investment in forest development as compared to competing activities

Trade policies Exchange rates, import controls, promotion of further processing and exports Potential for modernization of forest operations and efficiency of processing, impact on raw material requirements

Fiscal policies Tax levels, royalties Capturing economic rents, influencing the fiscal regime of the forestry sector and the behaviour in forest management and harvesting

Privatization and changing role of the public sector Legal framework, reduction in public sector's role and expenditures Expansion of private sector's role, reform of public institutions including forest services, impact on social and environmental functions of forests

Infrastructure

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

Modernization of transport, telecommunications, highways Improved economic efficiency in development activities Improved forest fire fighting; deforestation; increased public awareness of environmental issues

Opening of new roads and railways, development of infrastructure for mining, fossil fuel exploration, hydroelectric and irrigation dams Opening access to new land areas thus facilitating the migration of new settlers and the development of new land uses Risks of uncontrolled deforestation and forest degradation unless careful planning ensures the conservation of important forest resources

Population and social affairs

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

Incentives to increase job creation Investment in small industries and new activities/training development Better use of resources and capacities

Reallocation of public funds to social welfare More funds for rural development in remote and/or poor rural areas in which forestry may be an important development opportunity Increased investment in forest and woodland management; forestation; wood production; development of job creation through processing and marketing

Population expansion and new settlements Infrastructure development, modification of land uses and opening of new areas of economic activities Degree of effective planning and government enforcement of incorporating forests and related activities

Land use and tenure

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

An officially promulgated land-use policy encompassing all sectoral policies dealing with natural resources and rural development and backed by appropriate instruments that ensure effective implementation Enforced land classification system recognizing major land uses and their production and protection functions; legal framework for land demarcation, land titling and security of tenure Secure forest ownership and clear management responsibilities are determinants to sustainable forest development as are clear and secure use rights, resulting in a commitment of interest groups (private owners, concessionnaires, user groups, local communities) to a long-term sustainability of the forest

"Sodbuster", "Swampbuster" and similar soil conservation instruments (USA) Set-aside subsidies with legislative support Increased pressure on other sectors including forest lands

Grants, subsidies and tax concessions for expanded or new rural activities (e.g. Landcare in Australia) Regional development support to rural areas; self-help groups in all sectors, aided by catalytic government inputs as needed Better living conditions, employment in rural areas; pressure off natural resources while allowing parallel development of forests (treeplanting, rational utilization)

Agriculture and livestock

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

Incentives, subsidies and support either
i) to expand food and agricultural production; or i) agricultural pricing versus wood pricing, subsidized mechanization, fiscal support to agriculture and livestock Agriculture and pasture expansion have in most cases been supported by governments at the expense of forests without long-term sustainability consideration

ii) to assist activities and services other than food production and set-aside schemes for agricultural land ii) abandonment of marginal agricultural lands; support for alternative land use; assistance to farmers in disadvantaged regions Natural regeneration; forestation for social, environmental and economic purposes in particular of abandoned agricultural lands

Legislation and fiscal measures Encouragement of economically and environmentally sustainable practices Increase in agro-forestry practices; forestation; increased availability of agricultural land for alternative uses

Fisheries

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

Incentives and price policy Protection of coastal areas and sustainability of fish populations Destruction of mangroves and coastal forests for shrimp farming

Trade

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

Trade agreements Trading partners; product competitiveness; trade volumes and values; infrastructure Changes in processing; new location of industries; access to labour and capital

Environmental protection through trade Restrictions; quotas on exports/imports; ecolabelling to certify product origin Reduction in demand or trade of forest products; more protected forest areas

Industry

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

Fiscal policies Incentive to modernize equipment and improve harvesting and processing technologies More efficient utilization of forest resources, particularly plantation-grown wood, but, if uncontrolled, danger of increased deforestation

Environmental and protective legislation Research and investment in pollution control technology Changes in competitive positions of wood industries and trading patterns; transfer of technological information

Tourism

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

Investment in rural jobs, infrastructure and other activities Agrotourism investment; slow down of internal migration Forestation; protection and conservation of natural resources; increased rural income and wood demand for infrastructure

Legislation and incentives to protect aesthetic and cultural rural areas Protection of rural environment, landscape and amenities Increased control on forestry activities; more protected areas; rural income; education in environmental issues

Energy

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

Pricing and distribution Availability and prices of fuels for domestic uses and small-scale industries; and of petrol for mechanization and transport Harvesting and increased commercialization of wood for fuel in forests and woodlands; urban and rural demand for woodfuels; expansion of agriculture through forest clearing and marginal land cultivation

Energy self-reliance; research/development of alternative fuels Increased forestation; harvesting; use of urban waste or industrial residues; integration of electricity systems Better management of forests; improved forest industrial development

Subsidies and grants to develop carbon sinks Research, development and use of technologies to reduce carbon and other emissons More forests allowed to grow to old age; preservation of forest resources

Environment

Policy instruments Cross-sectoral linkages arising from policy instruments Impacts on sustainability of forest development (social-economic- environmental-political)

National environmental plans; soil conservation strategies; plans to combat desertification Harmonized strategies encompassing all land-use sectors; self-help farm and community soil and water conservation actions including tree planting with government inputs Nationwide development of actions for the conservation of natural resources; impacts on the sustainability of forest development

Adherence to international agreements and conventions Reduction in or elimination of pollution of the environment Health improvement of forests; restoration of damaged forests

Legal establishment of protected areas and natural reserves Maintenance of biological and genetic diversity; protection of endangered resources Transferral of wood production areas to protected areas; lower wood availability; stricter environmental control on forest operations

Macro-economic policies: fiscal, monetary, privatization and public expenditure
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
Economic integration	Concerted policies and investment programmes	Greater national and international flow of investments in forest development; increased competition and trade in forest products
Greater emphasis on quality of life	Development of life indicators (health, environment, education, culture, etc.)	Increased demand for natural forest conservation in landscape, green belts of local species, recreation, urban forestry
Greater emphasis on sustainable development	Regulatory and economic instruments to promote economic and environmental sustainability in all sectors	Changes in silvicultural practices; emphasis on use of renewable resources; reduced waste and more recycling
Monetary and credit policies	Credit allocation and subsidies, interest rates	Discount rates, subsidies, investment capacities determine the competitiveness of investment in forest development as compared to competing activities
Trade policies	Exchange rates, import controls, promotion of further processing and exports	Potential for modernization of forest operations and efficiency of processing, impact on raw material requirements
Fiscal policies	Tax levels, royalties	Capturing economic rents, influencing the fiscal regime of the forestry sector and the behaviour in forest management and harvesting
Privatization and changing role of the public sector	Legal framework, reduction in public sector's role and expenditures	Expansion of private sector's role, reform of public institutions including forest services, impact on social and environmental functions of forests
Infrastructure
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
Modernization of transport, telecommunications, highways	Improved economic efficiency in development activities	Improved forest fire fighting; deforestation; increased public awareness of environmental issues
Opening of new roads and railways, development of infrastructure for mining, fossil fuel exploration, hydroelectric and irrigation dams	Opening access to new land areas thus facilitating the migration of new settlers and the development of new land uses	Risks of uncontrolled deforestation and forest degradation unless careful planning ensures the conservation of important forest resources
Population and social affairs
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
Incentives to increase job creation	Investment in small industries and new activities/training development	Better use of resources and capacities
Reallocation of public funds to social welfare	More funds for rural development in remote and/or poor rural areas in which forestry may be an important development opportunity	Increased investment in forest and woodland management; forestation; wood production; development of job creation through processing and marketing
Population expansion and new settlements	Infrastructure development, modification of land uses and opening of new areas of economic activities	Degree of effective planning and government enforcement of incorporating forests and related activities
Land use and tenure
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
An officially promulgated land-use policy encompassing all sectoral policies dealing with natural resources and rural development and backed by appropriate instruments that ensure effective implementation	Enforced land classification system recognizing major land uses and their production and protection functions; legal framework for land demarcation, land titling and security of tenure	Secure forest ownership and clear management responsibilities are determinants to sustainable forest development as are clear and secure use rights, resulting in a commitment of interest groups (private owners, concessionnaires, user groups, local communities) to a long-term sustainability of the forest
"Sodbuster", "Swampbuster" and similar soil conservation instruments (USA)	Set-aside subsidies with legislative support	Increased pressure on other sectors including forest lands
Grants, subsidies and tax concessions for expanded or new rural activities (e.g. Landcare in Australia)	Regional development support to rural areas; self-help groups in all sectors, aided by catalytic government inputs as needed	Better living conditions, employment in rural areas; pressure off natural resources while allowing parallel development of forests (treeplanting, rational utilization)
Agriculture and livestock
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
Incentives, subsidies and support either i) to expand food and agricultural production; or	i) agricultural pricing versus wood pricing, subsidized mechanization, fiscal support to agriculture and livestock	Agriculture and pasture expansion have in most cases been supported by governments at the expense of forests without long-term sustainability consideration
ii) to assist activities and services other than food production and set-aside schemes for agricultural land	ii) abandonment of marginal agricultural lands; support for alternative land use; assistance to farmers in disadvantaged regions	Natural regeneration; forestation for social, environmental and economic purposes in particular of abandoned agricultural lands
Legislation and fiscal measures	Encouragement of economically and environmentally sustainable practices	Increase in agro-forestry practices; forestation; increased availability of agricultural land for alternative uses
Fisheries
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
Incentives and price policy	Protection of coastal areas and sustainability of fish populations	Destruction of mangroves and coastal forests for shrimp farming
Trade
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
Trade agreements	Trading partners; product competitiveness; trade volumes and values; infrastructure	Changes in processing; new location of industries; access to labour and capital
Environmental protection through trade	Restrictions; quotas on exports/imports; ecolabelling to certify product origin	Reduction in demand or trade of forest products; more protected forest areas
Industry
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
Fiscal policies	Incentive to modernize equipment and improve harvesting and processing technologies	More efficient utilization of forest resources, particularly plantation-grown wood, but, if uncontrolled, danger of increased deforestation
Environmental and protective legislation	Research and investment in pollution control technology	Changes in competitive positions of wood industries and trading patterns; transfer of technological information
Tourism
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
Investment in rural jobs, infrastructure and other activities	Agrotourism investment; slow down of internal migration	Forestation; protection and conservation of natural resources; increased rural income and wood demand for infrastructure
Legislation and incentives to protect aesthetic and cultural rural areas	Protection of rural environment, landscape and amenities	Increased control on forestry activities; more protected areas; rural income; education in environmental issues
Energy
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
Pricing and distribution	Availability and prices of fuels for domestic uses and small-scale industries; and of petrol for mechanization and transport	Harvesting and increased commercialization of wood for fuel in forests and woodlands; urban and rural demand for woodfuels; expansion of agriculture through forest clearing and marginal land cultivation
Energy self-reliance; research/development of alternative fuels	Increased forestation; harvesting; use of urban waste or industrial residues; integration of electricity systems	Better management of forests; improved forest industrial development
Subsidies and grants to develop carbon sinks	Research, development and use of technologies to reduce carbon and other emissons	More forests allowed to grow to old age; preservation of forest resources
Environment
Policy instruments	Cross-sectoral linkages arising from policy instruments	Impacts on sustainability of forest development (social-economic- environmental-political)
National environmental plans; soil conservation strategies; plans to combat desertification	Harmonized strategies encompassing all land-use sectors; self-help farm and community soil and water conservation actions including tree planting with government inputs	Nationwide development of actions for the conservation of natural resources; impacts on the sustainability of forest development
Adherence to international agreements and conventions	Reduction in or elimination of pollution of the environment	Health improvement of forests; restoration of damaged forests
Legal establishment of protected areas and natural reserves	Maintenance of biological and genetic diversity; protection of endangered resources	Transferral of wood production areas to protected areas; lower wood availability; stricter environmental control on forest operations