Forest Vocation Lands and Forest Policy: When Simpler is Better
By José Rente Nascimento (12/05, RUR-05-03, En)
This paper addresses forest policies concerned with the adequate provision of forest related externalities. This group of policies seeks to reduce negative externalities and produce adequate levels of these services (positive externalities or public goods) as required by societies. Despite the use of the forest vocation land (FVL) concept in the legislation of many Latin American countries, the discussion in the scientific literature about forest policies based on it is modest This paper seeks to contribute to this debate.
For this, it presents facts, defines concepts, examines analytical frameworks, and investigates policy alternatives related to these externalities in private lands. Forest policies based on the use of the FVL methodology are shown to be effective and efficient alternatives to address specially water and soil related externalities and to improve the competitiveness of forest businesses. The paper discusses land use planning methodologies and concepts which have been used frequently to identify sites for specific uses or having particular characteristics as well as their advantages and disadvantages. Next, it explores the use of a framework based on the vocation of lands as a strategic approach for the design and implementation of effective forest policies that address externalities. To improve the understanding and application of the vocation land methodology, the paper discusses the land rent model as applied to land use assignation. The model can help to explain, for instance, when landowners may find it to their advantage to assign a forest use to land, the consequences of additional costs associated with the adoption of soil and water conservation measures in agriculture production, as well as the consequences of externalities not being considered by the landowner; what happens to land use choice if environmental services compensations are made for certain forest use of land; and when deforestation is good or bad for society.
The paper concludes that FVL is a useful model for the design of forest policies that seek to assure the provision of forest related externalities. Such policies are especially adequate for developing counties because they are relatively easy to understand; are less intrusive in the forest business decision making processes and, thereby, allow for greater freedom of action; are less costly to monitor, enforce, and comply with; reduce corruptive activities and illegality associated with forests; and do not require adjustments as technologies and market conditions change. Last, the paper explores and summarizes the implications for forest policy from the use of the forest vocation land methodology. The implications for the following issues are explored: biodiversity preservation; carbon sequestration and stock; illegality associated with management plans and custody chain controls; payments for environmental services; and poverty in the forest.
This working paper is being published with the sole objective of contributing to the debate on a topic of importance to the region, and to elicit comments and suggestions from interested parties. This paper has not gone through the Department's peer review process or undergone consideration by the SDS Management Team. As such, it does not reflect the official position of the Inter-American Development Bank.
Last updated: 05/08/07
