Building a Strong Forest-Based Sector in a Market Economy: Issues to Consider in the Transition : Integrated Sustainable Multiple-use Forest Management under the Market System. Proceedings from IUFRO International Conference

Kopenhagen

1992

S. 43-61

8 Lit. Ang.

Bandaufführung

76563

Modern market econonomies are complex systems that take time to develop, since they depend on an accumulation of experience related to decentralized decisionmaking and a buildup of good information flows, access to technical skills and financial resources, and a body of effective public policies. Thus, a market-based forestry sector has to have in place a substantial and complex social and economic infrastructure, if the major potential weaknesses of the market system are to be avoided. Such weaknesses include among other things creation of negative environmental impacts, loss of the nonmarket outputs from forests, poor distribution of the benefits from economie activity, noncompetitive behavior, and inefficient production that can result in loss of markets. A broad policy framework is needed to deal effectively with the potential problems and opportunities that arise as a country moves toward a market-based economy. The present paper lays out some elements that need to be considered in developing such a policy framework to guide the forest-based sector in a market economy. These elements relate to: (1) land ownership and control policies; (2) land management policies; i.e., related to management objectives and approaches for both public and private forests (including for nontimber outputs and environmental protection); (3) social infrastructure and science policies; (4) industrial development policies; (5) trade policies; and (6) financial and fiscal policies. In implementing the policies that are created within these six areas, the public sector can use a number of different policy instruments. These include basically two types: (1) those that attempt to influence private activity (regulations, subsidies, taxes, and technical assistance, such as research, training, education, and information programs); and (2) those that involve direct government production of forest-based goods or services and protection of forest resources through public investment and ownership of forest land.