Forest fiasco

TWO large-scale forest projects slated tobegin this year, aim to focus on Laos'forest resources more extensively. Theprojects - the World Bank's (WB)Forest Management and ConservationProject (FOMACOP), and the AsianDevelopment Bank's (ADB) industrialtree plantations - are being criticisedfor posing serious ecological and social threats.

The FOMACOP is a forest-aid packagecomprising a WB loan of us $8.7 millionfor forest management, a us $5.8 mil-lion grant from FINNIDA (the FinnishDevelopment Aid Agency) and a us $5.6million grant from the GlobalEnvironment Facility (GEF).

Under flak from international environmental groups and Laotian forestryofficials since its inception two yearsago, the WB'S final decision to approvefunds was delayed four times untilMarch 1994. Meanwhile, the planunderwent some revisions particularlythe clause proposing the removal of tariffs on log exports. International environment groups claimed that tariffremoval would actually hasten timberextraction and accelerate deforestation in Laos.

Currently, there is a 1990 ban on logand sawnwood exports in Laos, but finished wood products export is allowed.The ban was issued following the interference of Thai loggers into Laotianforests after Thailand closed its foreststo logging concessions in January 1989.

FOMACop aims to introduce "scientific and sustainable logging" in naturalforests to make existing logging moreefficient and to control illegal logging.Current logging policy in Laos allowstimber extraction from the potentialreservoir areas of four large dams,accounting for 400,000 cu rn over four years.

In an interview with the Bangkok-based Nation newspaper, director of thewatershed management unit of theLaotian forestry department, Chanthaviphone Inthavong, said that Laos, forthe first time, will have a forestry management plan, instead of the usualquota-based logging.

According to Chanthaviphone,Laos' land use policy targets a forestcover increase from the present 47 percent of the total land area to 70 per centofthe total land area. Ofthis, 12 millionis alloted for timber production, and2.8 million ha for fast-growing tree plantations.

NGOS claim that the ADB projectwould place farmers in debt since theywill be encouraged to take hefty loans.Although there is a grace period ofsevenyears before the loans are repaid, thefarmers will remain cash-strapped andland-less in the meanwhile. Moreover,70 per cent of the loan is for the government to re-lend to the private sector and not the farmers.

But the ADB project mission leader,Marshuk Ali Shah, stated that the project would "bring into productive useunstocked/degraded forest lands whichare currently unoccupied and largelyunderutilized and offer little other alternative use."

Premrudee Daoruang, working witha regional environmental group in Laos,states, "Forest conservation in Laosmust begin with the farmers and localpeople dwelling in forest areas as theyknow their ecosystems and depend onthem for their livelihood."