Private Enterprise and Financial Markets > Environment > Forestry and Biodiversity Conservation and Management
Forest Clusters: A Competitive Model for Latin America
By Manuel Bonita, Fernando Correa, Pertti Veijalainen, Harri Ahveninen (03/02, En)
Studies from different parts of the world indicate the key factors that contribute to success in the forest business. These include sound macroeconomic and long-term forest policies, secure land tenure, support from related education and technology programs, and cooperation among the various industries involved in producing and marketing forest products and services. The Nordic countries? extensive experience in forest cluster development (that include adequate management of the resource and successful competitiveness of the products in global markets), presents an inspiring model for other countries to consider. In this paper, forest clusters are analyzed as a possible means of development for five selected Latin American countries.
The basic objective of this document is to examine the potential for creating forest clusters in Latin America. Specifically, this study aims to (1) identify issues and opportunities for forestry and the forest industry as a vehicle for development in Latin America; (2) define lessons for forest cluster development in Latin America in the light of good-practice experiences in the Nordic countries; and (3) formulate policy recommendations for the selected Latin American countries on how to develop and environmentally manage different types of forest clusters.
In undertaking a study of the different forest clusters the basic working tool used to analyze competitiveness is the ?diamond? model introduced by Porter in 1990. The model allows planners to assess four determinants that shape the diamond of a cluster, i.e., the key firms, factor conditions, demand conditions, and related and supporting industries, as well as the three forces that shape the environment around the cluster, i.e., government, chance, and international business activities.
The model?s main strength lies in its ability to allow policy- and decision-makers to focus on the factors that make the forestry sector and its clusters competitive in the global economy. It also shows how local forest clusters can contribute to sustainable development. The diamond model needs to be complemented by other analytical tools used in traditional sector planning, when resolving some particular forestry issues (e.g., the environmental or social roles of forests). Cluster development benefits from networking in the forest sector value chain. It accentuates a shared understanding of sector strengths, weaknesses, opportunities and threats, thus enabling dynamic policy interventions and participation by all types of stakeholders in forest sector development.
The five countries analyzed in this study differ significantly from each other. In the short term, Brazil and Chile will be in the best position to expand their forest production, mostly due to existing, but still young, forest plantations and to a relatively stable macroeconomic development. Argentina has one of the best forest development potentials on the continent but unfortunately it is struggling with a political and financial crisis at the writing of this document, which may delay the medium- and long-term investments in the forestry sector. In Colombia, the past dynamism in forestry has produced good results. However, the current limiting factor is the civil violence and state of war in the country. In Mexico, the emphasis on continuing to resolve the land tenure situation and the existence of a new Strategic Plan for Mexican Forestry may provide the possibility of increasing investments in forestry and developing a vital forest cluster in Mexico. There is a great potential in all five countries to develop forest clusters and thus benefit from a competitive position in global markets while still maintaining a sustainable base of production.
Last updated: 04/20/07
