home
cover
1. recommendations
2. introduction
3. the case for positive conditionality & international responsibility
4. the forest policy reform project & the steering committee
5. transparency
6. forest yield & revenue potential
7. concession activity and review
8. dfw–enforcement & jurisdiction
9. situation update–general
special military region
military region 1
military region 2
military region 3
military region 4
military region 5
10. the role of cambodia’s neighbours & other importing countries
thailand
laos
vietnam
japan
11. opportunities
the forest stewardship council (fsc)
protected areas and world heritage status
12. conclusion
The World Bank, UNDP and FAO’s 1996 Forest Policy Assessment estimated that Cambodia’s forests could yield up to $100 million per year. Global Witness has consistently said that this figure is too high, based on the DFW’s own estimates of sustainable yield. This stance has since been backed up by the Forest Policy Reform Project’s estimate that the maximum annual sustainable yield from Cambodia’s forests to be no more that 500,000m3, probably less. Based on the newly imposed royalty of $54 per m3 this could generate up to $27,000,000 per year, to which export and other taxes can be added.
However, the frequent quoting of the $100 million per year figure has led to de facto acceptance that it is correct, regardless of reality; this gives rise to the risk that the donor community will expect the forestry sector to contribute an unrealistically high figure to the national budget. The 1999 budget includes a contribution from the forestry sector of almost $20 million, over 70% of the potential $27 million that could, according to the Forest Policy Reform Project’s calculations, eventually be generated from a well managed and reformed forestry sector. This suggests that the RGC feels under pressure to deliver more than the forests can sustainably yield at this time.
Of further concern are recent press reports which suggest that the ADB estimates a sustainable annual harvest of 1.5 million m3, three times the Forest Policy Reform Project’s estimate. If these reports are true then the ADB’s figures pose a severe risk of over-exploitation of an already threatened resource.
Finally, forest revenue can be substantially increased by efficient tax collection. Recent calls by the Cambodia Timber Industry Association (CTIA) to relax the tax burden due to "the difficult climate" must be ignored. The majority of the CTIA’s members have enjoyed, exploited and avoided Cambodia’s inefficient tax system for their own benefit for years, not to mention their involvement in illegal activities. It is time that they contributed to their host country which also operates in a "difficult climate".
back
| top |
next
|