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Session 1: Enabling frameworks for poverty reduction through small and medium forest enterprise development. Non-Wood Forest Products Marketing and Small Enterprise Development for Poverty Alleviation in Lao PDR. Vongvilai Vongkhamsao Khamphay Manivong Joost Foppes Thibault Ledecq.
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Session 1: Enabling frameworks for poverty reduction through small and medium forest enterprise developmentNon-Wood Forest Products Marketing and Small Enterprise Development for Poverty Alleviation in Lao PDR
Vongvilai Vongkhamsao Khamphay Manivong
Joost Foppes Thibault Ledecq
Small and Medium Forest Enterprise Development for Poverty Reduction:
Opportunities and Challenges in Globalizing Markets
CATIE, Turrialba, Costa Rica, May 23-25, 2006
They all collect Non-Wood Forest Products (NWFP) regularly
Poorest families and women are most dependent on NWFP
All NWFP consumed per household is $400 – 500 per year, or 30 - 40% of GDP
Private Sector under-developed, few NWFP companies
Mainly raw materials, low pricesTheme 1: Lao PDR: NWFP based economy
Forestry Strategy 2020
Forestry Law and various decrees
Asean Free Trade Area (AFTA)
Export promotion policies
Some Strong and Weak Points:
+ Customary rights of villagers to collect NWFP for household use recognized
+ Good initiatives to promote exports (AFTA, product promotion strategies etc.)
– Access rights for commercial use are still confusing
– NWFP Trade and small enterprises suffer from over-regulation (quota, taxes etc)
– Few mechanisms or services to promote SMETheme 2: Political-legal framework for forest SME development (1): Key elements and issues
Basic policies and legislation is in place…
No documented systems for sustainable harvesting of NWFP
NWFP management is not based on resource assessments
Weak mechanisms for mediating conflicts between villages on sharing benefits from forests
Resource management should be an integral part of village socio-economic development plans
Clarify forest access rights for village producer groups, e.g. through detailed land use zoning, publicized maps
Integrate NWFP in forest management plans of (timber) production forests
Resource assessment should become a requirement for any forest-based enterpriseThemes 2,3: Political-legal framework for forest SME development (2): Forest Access and Resource Issues
Some ways to improve:
NWFP produced in sustainable way do not need to be under forestry quota
Abolish quota, reduce agriculture and forestry tax
Increase tax from mining, industries
Promote SME support services, training and extension support
Develop national NWFP policyThemes 2,3: Political-legal framework for forest SME development (3): Over-regulation affecting markets
“Chain of fees”: case of broom grass
400 kip/kg (20%)
Villagers are poor, sell NTFP to buy food
Villagers competed with each other selling shoots by bundles, not per kg
Poor prices from traders
NWFP situation in 2006:
Food security achieved
Income increased 5 fold
Village generates its own funds for developmentTheme 4 Commercial forest management and rural livelihoods: (1) bamboo-shoots in Nam Pheng village
IUCN Project Interventions
Village rice banks: food security, less need to sell NWFP cheaply
Forest land allocation: secure access, better harvesting rules and control
Marketing groups: selling in group, by weight, not by bundle
Drinking water supplies: Reduced workload, better health, more time to collect NWFP
Women’s savings group: Providing credit for new enterprises, more collaboration within village
1. NWFP not a poverty “trap” but an “escape ladder”!
2. Side-ways and up-ways spread from pilot sites
3. How to scale up from here? Limits remaining:
Case of Rubber:
the Existing Situation.
List existing resources and
products and identify
local people interested
in developing enterprises
Phase 2: Identify Products,
Markets and Means of Marketing.
Identify potential markets
and resources by local people.
Organise stakeholder meetings.
and constraints to select
promising NWFP products.
Phase 3: Plan Enterprises for Sustainable
strategy and business plans.
Entrepreneurs are guided
through a pilot phase
and training, learn to monitor
progress and to adapt
when change is needed.Theme 5: Forest SME and poverty reduction: (1) Understanding the value chain
FAO&RECOFTC Market Analysis and Development (MA&D) approach:
Theme 5: Forest SME and poverty reduction(2) Impact of MA&D on relations along the chain
Theme 5: Forest SME and poverty reduction(3) How are benefits shared?
from seasonal price changes
A: Services provided by NAFRI/FAO/SNV:
1 Training services:
2: Market Information Service
Theme 5 (4): Role of technical, business and financial services: support concept
Enabling policy environment
Research and information-MIS
Business development services and service providers
Sustainable management/production system
Collaboration, linkages, and learning mechanism
- Marketing groups
- Micro and small enterprises
- Private sector investment
- Integration into value chains
Participatory (village based)
- Government institutions (NAFES,, NAFRI, TPC, PAFO, provinces
- Private enterprises/trainers
- Village funds
- Saving and credit groups
- Financial institutions (Agriculture development bank, commercial banks, other banks/FIs)
THANK YOU !
Vongvilai Vongkhamsao, NAFRI, firstname.lastname@example.org P.O. Box 7174, Vientiane, Lao PDR
Khampay Manivong, NAFRI, email@example.com P.O. Box 7174, Vientiane, Lao PDR
Thibault Ledecq, FAO, firstname.lastname@example.org P.O. Box 1640, Vientiane, Lao PDR
Joost Foppes, SNV, email@example.com P.O. Box 9781, Vientiane, Lao PDR