SFM for economic development
In many countries, the current level of wood removal from forests is less than the annual tree growth. Increasing production through better forest management practices and appropriate safeguards can unlock the economic potential of forests, benefitting national and local economies. Additionally, there are opportunities to increase income through non-wood forest products (NWFPs) and marketing forest ecosystem services. Challenges to realizing this potential include inadequate market opportunities, limited capacity for SFM, and a lack of investments in forests. However, payment for environmental services (PES) schemes is emerging as a solution in some cases.
Major investments are needed to meet future demand for industrial roundwood and forest-based biofuels, which could help reduce greenhouse gas emissions. Implementing SFM principles in forests and downstream processing would yield multiple economic benefits, including improved livelihoods, strengthened safety nets, and greater environmental conservation.
Forest owners and managers have differing time horizons that influence their decision-making on how forest lands are used. For land to remain forest, the net present value of forest management should be higher compared to other potential land uses. The longer timeframe in forestry can complicate decision-making, particularly when considering the risks associated with long-term-term biological production.
SFM strategies should also consider the integration of the informal sector, as these forest users play important roles in developing countries by generating local employment in small-scale harvesting, wood processing, ecotourism, and provision of environmental services. Trade in forest products has supported economic growth and poverty eradication in emerging countries. However, some cases of forest product trade are characterized by monopsonies and exploitive market chains, further marginalizing disadvantaged people. Safeguards must be put in place to ensure legal and sustainable forest use, fair working conditions, and equitable sharing of rights, responsibilities, and benefits. Good governance is essential for enabling sustainable and equitable production and trade.
