fao.gif (912 bytes)

 

FO:TCP/SUR/4551

TECHNICAL COOPERATION PROGRAMME

STRENGTHENING NATIONAL CAPACITY FOR SUSTAINABLE DEVELOPMENT OF FORESTS ON PUBLIC LANDS

SURINAME

Terminal Statement
prepared for
the Government of Suriname
by

the Food and Agriculture Organization of the United Nations

Rome, 1998

Table of Contents

SURINAME

2. RESULTS AND CONCLUSIONS

3. RECOMMENDATIONS


1. INTRODUCTION

1.1 Project background

Suriname has extensive forests covering slightly more than 90% of the country's total land area of 16.4 million ha. The population of Suriname is approximately 400 000, of which about 65% lives in the vicinity of the capital city of Paramaribo, 25% along the coastal strip and the rural area south of Paramaribo and the remaining 10% in the interior.

The forests of Suriname are predominantly dry highland tropical rainforest, although there are large areas of wet lowland forest in the coastal belt. To the south of the wet coastal areas and the dryland savannah forest lies an area of about 2.5 million ha, called the forest belt, where most forest development and forestry activities have taken place over the last 150 years and where an increasing amount of harvesting activity is being carried out.

Recently, great interest has been shown in developing large tracts of the forest outside the forest belt. Foreign investors, primarily from Asia, are keen to obtain timber supplies in Suriname. The Government of Suriname is therefore interested in utilizing the forest resources as a means of contributing to the sustainable economic development of the country.

Planned and supervised sustainable forest management, however, is a prerequisite for the proper long-term development and use of the forest resources of Suriname. Currently, there is no long-term forest policy including both social and environmental aspects and the sustainable and economic use of the country's forest resources. There are virtually no economic returns to the country from the existing forest activities and the Government has neither adequate funding nor the necessary facilities, in the form of trained personnel, equipment and consumables, to remedy this. The Government of Suriname thus requested assistance from FAO to strengthen its forestry institutional capacity and to improve its sustainable forest management.

1.2 Outline of official arrangements

This assistance was approved by FAO under the Technical Cooperation Programme project TCP/SUR/4551, "Strengthening National Capacity for Sustainable Development of Forests on Public Lands", and the Project Agreement was signed by FAO on 10 March 1995 and by the Government of Suriname on 22 June 1995. The project, with a planned duration of 10 months, started in August 1995 and was completed in September 1996. The original financial contribution from FAO was $US 259 000, subsequently revised to $US 379 402. FAO provided international assistance in policy and forestry development, and both international and national consultants were hired on forest management, forest legislation and institutions and administration.

The Government of Suriname, through the Ministry of Natural Resources, provided the National Project Coordinator and a forester with experience in forest management, as well as office space and logistic support (communication, ground transport, secretarial services and office supplies).

1.3 Objective of the project

The overall objective of the project was to strengthen the Government's forestry institutional capacity and to improve sustainable forest management. The immediate objectives were to:

- assist in training the Government of Suriname staff to strengthen the national capacity for preparing a coherent policy framework and to establish acceptable technical standards for the sustainable development of the forest resources;

- assist the Government to start the process of forest policy formulation; and

- help in the development of appropriate institutional arrangements for the sound implementation of sustainable forest management on public lands.

As a basis for the extension of the project it was later agreed to add a further objective: to ensure continuation of the technical assistance on forest policy analysis, formulation and implementation and to strengthen the country's institutional capacity for increasing investments in the forestry sector.

2. RESULTS AND CONCLUSIONS

2.1 Training

In-country training was given in all aspects of forestry covered by the expertise inputs in this project. Six workshops and one seminar were organized. The aim of the workshops was to establish a realistic diagnosis of the current forestry situation, in collaboration with the Ministry of Natural Resources and the Forest Service and members of other government organizations. The workshops provided a clear picture of the situation in each area and ensured that the solutions reached were appropriate, practical and accepted by the participants.

A public seminar was then held in which representatives from other governmental and non-governmental organizations, forest operations and industry, international organizations, etc., were invited to share the results of the workshops and to exchange ideas about the management of the forestry sector in general.

A two-week study tour to the United States was carried out with the cooperation of the US Forest Service. The Senior Forestry Adviser to the Minister of Natural Resources, the Head of the Planning Division and the Forest Management Planner, both of the Suriname Forest Service, participated in this study tour, which concentrated on forest concession management and control, with emphasis on planning at national and regional levels, the rights and participation of tribal peoples, contract preparation and negotiation, the conservation of biodiversity, fee determination and collection and the monitoring of concessionaire activities. The participants obtained a good understanding of existing forestry-related problems and an awareness of new technologies, along with the opportunities and limitations regarding their application.

2.2 Policy formulation and results

In order to coordinate project activities, maintain close contact with key government staff, acquire information on forestry sector developments and develop a foundation for formulating an appropriate forest policy, a Policy Formulation Task Force (PFTF) was established at the beginning of the project. This task force consisted of the Director of the Ministry of Natural Resources, the Adviser and Head of the Negotiating Committee, the Adviser to the Minister, the Head of the Forest Service, the Head of the Planning Division of the Forest Service and the FAO Project Team Leader.

PFTF inputs were extremely valuable in formulating forest policy for Suriname. They not only ensured that government objectives and concerns were considered, but also contributed to making the result of the work on the National Forest Policy (NFP) appropriate to the circumstances in Suriname. Since a good forest policy is based on a clear understanding of national forestry goals, considerable effort was made by the project to determine these goals within each of the main specialty areas: sustainable forest management, economic production of forest products, good environmental management and the social and economic wellbeing of the country. These were then used as a basis for a new NFP for Suriname. During the forest policy workshop the recommended national forestry goals for Suriname were agreed on and refined.

A clear NFP, based on national forestry goals, is needed to serve as a framework for all activities in the forest sector. Following the workshops with the Forest Service, the national forestry goals elaborated should lead to sustainable forest management with properly planned development, the management and control of production activities and the integration of other uses. They should establish the conditions for an economic production of forest products, with optimum utilization, minimum waste, efficient operations and stable raw material supplies. They should also establish good environmental management, with minimum negative impacts from forest operations and the maintenance of biodiversity and recreational values. Finally, they should contribute to the social and economic wellbeing of the country by creating opportunities for the people living in the interior, improving their living conditions, respecting the traditional rights of the inhabitants of the forest areas and providing employment opportunities.

2.3 Forest management

At present, the Suriname Forest Service, within the Ministry of Natural Resources, is the government organization responsible for forest management. Since large tracts of land outside the area currently known as the forest belt are likely to be developed, the Ministry proposed that a Forest Management and Development Authority (later Forest Management Authority, FMA), distinct from the Forest Service, be established to manage and control the newly-developed concession areas. The original concept was modified by the Ministry to include the management of existing forest concessions of 50 000 ha and more, while forest concessions and licence areas below 50 000 ha would be managed by the Forest Service.

A draft law for the establishment of the Forest Management and Development Authority is ready to be submitted to the National Assembly. At the time this report was written, the establishment of the authority depended on the approval, by the National Assembly, of one of the large concessions.

In view of the forthcoming institutional arrangements, a strategy for the strengthening of forestry institutions in Suriname was elaborated by the project. A set of activities was selected which, if implemented, would give the Ministry of Natural Resources the capacity for proper management and development of the forestry sector and the Forest Service the capacity to perform its core functions, including control on forest concessions below 50 000 ha, the handling of export licences and concession requests. The FMA would also be made fully operational and capable of performing all its functions, including forest control on concessions of 50 000 ha and above and the country's education and training institutions would provide high-quality forestry education and training, with an intensification of research in both the field and the laboratory.

At the request of the Ministry of Natural Resources, the project produced a proposal for a Forest Production Control Division within the Forest Service. This would be responsible for re-establishing control and order in current forest operations within the forest belt, initially in those areas from which wood for export is extracted.

2.4 Forestry Advisory Assistance project

A proposal for a follow-up phase of forestry advisory assistance was prepared by the project to enable the Ministry of Natural Resources to deal with the many important forestry issues needing urgent attention, such as implementing the Forest Management Act of 1992, establishing and updating the values and costs of logs and other forest products for the domestic and export markets and improving the basis for sustainable forestry development in Suriname, with full consideration given to optimum utilization, biodiversity and other environmental aspects. The Project Document has now been approved and signed by the Government of Suriname, FAO and the Government of the Netherlands, which will provide the funds under Trust Fund arrangements.

2.5 Forest production control

The situation in the forestry sector is critical and certain issues urgently need to be addressed. The most important is the lack of control over current timber operations, which produce environmental degradation, considerable waste and are not considered sustainable. The Forest Management Act of 1992 provides a good framework for sound and sustainable forest management. However, the procedures defined in the act are not implemented. This has been identified by the Ministry of Natural Resources as an extremely urgent problem. In coordination with the Ministry, the project made a proposal for Forest Production Control, reaching the following conclusions. Land use planning is needed to define the forest areas, which should be classified as permanent, temporarily maintained or conversion forests. Permanent forest areas should be subdivided into permanent production, protected and specially protected forests. Continuous forest assessment should be introduced, forest management units designated and forest management unit plans prepared. Concessions should be issued, rather than the current system of granting incidental cutting licenses, and appropriate harvesting regulations should be introduced.

2.6 Legal aspects

The Forest Management Act of 1992, if implemented, could provide the cornerstone of an appropriate legal framework for the sustainable development of forestry on public land. However, various aspects of the law should be amended. Before it can be effectively implemented, the forested areas of Suriname should be classified according to the designated categories and sub-categories described above. Furthermore, a significant amount of subsidiary legislation, regarding bio-prospecting, fee-setting, etc., should be passed and the institutional capacity necessary to enforce the law should be established.

There is a lack of legal expertise within the Forest Service and the Ministry of Natural Resources. Assistance is needed to build the capacity of the forestry institutions, including the establishment of a legal office regarding forestry-related matters. In the present institutional situation this office should be located in the Forest Service.

The development of forestry and other sectors in the interior of the country is likely to be increasingly hampered by uncertainty as to the rights of the tribal people in these areas. Although the complexity and politically sensitive nature of the issue requires that it receive attention at the highest level of government, the development of communal forest areas as provided for in the Forest Management Act of 1992 could help to build good relations with the peoples of the interior. This is critical to the long-term development of the forestry sector.

Forest management and legal reform in the sector is hampered by the absence of an official NFP statement. Proper long-term development of the forest sector will also require the strengthening and development of the institutional and legal framework in other areas, notably land use planning and environmental protection.

2.7 Institutional arrangements

The situation in the forestry sector is dynamic. To manage and control developments it is necessary to have an effective institutional and organizational structure with the required personnel, facilities and equipment and adequate financing. At present, the management and control of the national forest resources lies under the jurisdiction of the Forest Service. Several institutional constraints and problems, which affect its capability, have been identified.

Until the issue of large concessions is resolved, the future of the forestry sector, especially as regards institutional and human resource requirements, is uncertain. As regards the Suriname Forest Service, some internal and external issues also need to be resolved. The internal issues include pay levels, manpower constraints, work environment, professionalism and institutional restructuring, while the external issues concern relationships with the Ministry of Natural Resources, the private sector and the proposed Forest Management and Development Authority.

2.8 Forest administration and policy analysis

When evaluating the effect that current macro-economic policies had on forest resource utilization, emphasis was placed on identifying key constraints to the long-term economic and environmental viability of the forest sector. One main issue was sustainability. This concerned timber yields, economic growth, and viability of the forest ecosystems and the welfare of the forest-based communities. Another important issue was that of forest fees, which are extremely low in Suriname. Available data, both local and international, need to be collected and evaluated in order to determine reasonable levels of return. The existing fees should then be revised.

Several key constraints limited the profitability of the forest industry sector in Suriname. The main constraints were produced by past macro-economic policies, leading to inefficient processing, low-quality production and poor market access, with subsequent low export prices. These aspects need to be overcome, as do the lack of infrastructure, human resource limitations, difficulties with financing, the insecurity of timber resources and bureaucratic obstacles.

Environmental costs and benefits need to be accounted for, since these are important factors in determining the total economic value of the forest resource. They include direct-use values, such as minor forest products, hunting, fishing and recreation, and indirect-use values, such as watershed effects, nutrient cycling, natural hazard control and carbon sequestration. In addition, there are important non-use values, predominantly the conservation of environmental assets for the benefit of future generations. Biodiversity prospecting is an area which has generated economic benefits in other countries and has the potential to become important in Suriname.

The trade policy regarding export logs and processed wood needs to be reviewed and revised, as do investment policies and financial-sector policies in Suriname. The role of foreign investors and the agreements made with investors should be examined carefully before final commitments are made. Potential investors should be screened and the sharing of costs and benefits, as well as the obligations of the investors, should be thoroughly reviewed.

Concession allocation should be reviewed and improved. Although there may be a need to improve current methodology, an appropriate first step would be to ensure that the existing procedures are followed. Size and tenure regulations, as well as the provisions for tribal communities, should be reviewed.

3. RECOMMENDATIONS

3.1 Forest policy

An NFP serves as a framework for all activities in the forest sector. It is therefore recommended that a sound, clearly stated and clearly defined long-term NFP be adopted and supported by the Government of Suriname. This should be based on the priority issues and national forestry goals mentioned above, as well as any other important issues and goals that may be identified. Implementation of these goals will strengthen the national capacity of the forestry sector and lead to sustainable management of the forest resources of the nation.

3.2 Forest management

It is recommended that control be established in timber exploitation operations in order to ensure proper and sustainable forest management. This can be begun by implementing the proposed Forest Production Control project. Suitable harvesting regulations should be established and enforced and appropriate fees should be charged for the utilization of forest resources. It is recommended that prescribed procedures, including the compilation of proper forest inventories, be followed in the issuing of concessions. The issuing of concessions with approved management plans should be maximized and the issuing of incidental cutting licenses be minimized. Land use planning and forest classification should also be carried out. Finally, continuous forest assessment design activities and specification management planning assistance activities should both be performed.

3.3 Legal aspects

The Forest Management Act of 1992 should be strengthened before it can be implemented and enforced effectively. It is therefore recommended that the Act be amended and appropriate subsidiary legislation be passed. The forest areas should then be classified as designated in the act and assistance provided to build the capacity of the forestry institutions and to establish a legal office in the Forest Service or Ministry of Natural Resources. The rights of tribal peoples should be clarified and resolved, while environmental and biodiversity protection should be ensured through environmental impact assessments and, in the longer term, through an environmental law. It is recommended that procedures be established to formulate and develop official forest policy on an ongoing basis and to control biodiversity prospecting in Suriname.

3.4 Institutional arrangements

In order to manage and control activities in the forestry sector it is necessary to have an effective institutional and organizational structure with appropriate personnel, facilities and equipment and adequate financing. It is therefore recommended that problems regarding low pay for personnel and inadequate funding of equipment and activities be corrected immediately. Reasonable fees should be paid to the Government, by concessionaires and others, for the harvest of forest products and use of forest resources and a portion of these fees should be placed in a Forest Fund (or similar account) to support the activities of the Service. The Forest Service should, through activities such as Forest Production Control, be strengthened and allowed to focus on its core functions of managing the forest resource and controlling the activities in the forest. It is recommended that the reorganization of the Forest Service be examined in detail and that, contingent on the creation of the Forest Management and Development Authority, coordination be established between the Authority and the Forest Service. A Manpower Assessment and a Human Resources Development Plan should be made for the forestry sector, including the Government and private sectors. It is also recommended that a high-level Forest Council be established, to be chaired or appointed by the President, to provide guidance regarding forest policy and monitor initiatives and to give forestry a more prominent and productive position in Suriname's economy and society.

3.5 Forest administration and policy analysis

Important key constraints undermine the long-term economic and environmental viability of the forestry sector. These affect the viability and sustainability of the entire sector and need to be dealt with quickly. It is therefore recommended that market failures be corrected by introducing the certification of sustainable forest management, phasing the issuance of large-scale concessions, penalizing poor forest management practices and considering social issues, such as tribal rights.

Other constraints are lack of information and insecure property rights. Data should be made available on forest inventories, world timber prices, etc., while firms should be issued with concessions or cutting licences, the rights of tribal peoples should be defined and improvements should be made in the renewal and extension of concession rights. Policy-induced distortions, producing imperfect competition, trade barriers and underpriced forest resources, should also be corrected and the policy-making process strengthened.

3.6 General recommendations

It is recommended that ongoing advisory assistance be provided to the Ministry of Natural Resources, including the identification and definition of additional issues which need to be resolved or dealt with. The Forest Production Control project should also be implemented as soon as possible. This will establish control in the timber exploitation operations and will ensure proper and sustainable forest management in these areas, providing an important base from which proper forest management can be extended to other forest areas.