36 extraction of more than the allowable harvest, removal of oversized or undersized trees, and harvesting
in areas where extraction is prohibited such as catchment areas, steep slopes, and river banks. Phuc and Sikor 2008 use three interrelated frameworks to analyse illegal logging in Viet Nam: lack of
compliance with forest regulations i.e., practices which constitute criminal acts, political economy i.e., inappropriateness and complexity of regulations and the emergence of public and private
concerns over illegal logging. In this report, illegal logging is seen as a failure of governance. It is a reflection of the inability to enforce laws and regulations, and the ineffective development of forest
management and accountability systems.
According to Bodegom et al. 2008 good governance refers to the normative concept which emphasizes the importance of the benefit for society at large as the ultimate goal of the process of
governing. Good governance should encompass the following aspects:
participation; legitimacy;
rule of law; transparency;
accountability; clarity of rights and responsibilities; and
efficiency. Improvements in forest policies, legislation and institutions will only occur in the context of
commitments and demands for improved forest governance. Otherwise, they will remain difficult to achieve.
5.1. Progress with governance
Historically, governments, the private sector, the military, communities and civil society organizations have played different roles in Asia-Pacific countries and continue to do so. In almost all countries,
business-government coalitions, often with military support, have dominated forestry. Depletion of forest resources calls for social and economic justice; however, demands for forest protection from
growing middle classes are hastening transfer of power to civil society organizations and to local communities.
East Asians who place greater emphasis on good management and standards of living than on democracy may act to slow democratic reform, particularly in view of the strong economic
performance of some of the region’s authoritarian governments NIC 2008. Growing frustration at the workings of democracy in some countries and curtailment of prerequisites such as press freedom,
suggest that ‘state capitalism’ may become a preferred development model. In relation, it is unclear whether governance in the region will improve with greater movement towards or away from
democracy Economist 2008. Gale 2006 suggests that business-government coalitions, which are dominant in the Asian model of development, may even work against implementation of sustainable
development by allowing business interests to dominate, although emerging ‘forest transitions’ in China and Viet Nam challenge this position Mather 2007.
Table 5.1 shows trends in three governance indicators related to illegal logging – control of corruption, rule of law and government effectiveness. In general, more developed countries score higher than
developing countries, while emerging economies lie in between. Many countries with remaining large areas of forest e.g., Cambodia, Indonesia, Myanmar, Lao PDR have lower scores than those where
resources have already been depleted and levels of economic development and consumption are higher. Countries where control of corruption is limited also often have high levels of illegal logging.
For example, in Myanmar, 80 percent of the timber produced in the country has been estimated by some as being illegal and levels of corruption are correspondingly high Phuc and Sikor 2008; Table
5.1. Likewise, Cambodia scores poorly in relation to corruption and it is suspected that most of the timber produced is also illegal Smith 2002. Positive trends are evident in less than half of the
37 countries for corruption and rule of law, but just over half for government effectiveness. In particular,
government effectiveness has improved considerably in China, Indonesia and Malaysia and control of corruption has made gains in Indonesia.
Table 5.1 Trends in governance indicators for Asia-Pacific countries
1
Governance Score -2.5 to +2.5 Control of
corruption Rule of
law Government
effectiveness Subregion Country
1998 2008 Trend 1998
2008 Trend 1998 2008 Trend
East Asia China
-0.4 -0.4 - -0.4
-0.3 + -0.3 0.2 +
Cambodia -1.0
-1.1 - -1.0 -1.1 - -0.8
-0.8 + Indonesia
-1.1 -0.6 + -0.8
-0.7 + -0.8 -0.3 +
Malaysia 0.5
0.1 - 0.5 0.5 + 0.6
1.1 + Myanmar
-1.4 -1.7 - -1.3
-1.5 - -1.2 -1.7 -
Lao PDR -0.7
-1.2 - -0.9 -0.9 - -0.6
-0.8 - Philippines
-0.4 -0.7 - -0.2
-0.5 - -0.2 0.0 +
Viet Nam -0.7
-0.8 - -0.5 -0.4 + -0.6
-0.3 + Southeast Asia
Thailand 0.0
-0.4 - 0.4 0.0 - 0.1
0.1 + India
-0.3 -0.4 - 0.2
0.1 - -0.2 0.0 +
South Asia Nepal
-0.4 -0.7 - -0.1
-0.8 - -0.5 -0.8 -
South Pacific Papua New Guinea -0.7
-1.1 - -0.6 -0.9 - -0.4
-0.8 -
Key: 0.5
-0.5 to 0.5 -0.5
Definitions: Control of corruption
– capturing perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as ‘capture’ of the state by elites and
private interests.
Rule of law
– capturing perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police and the courts, as well as
the likelihood of crime and violence.
Government effectiveness – capturing perceptions of the quality of public services, the quality of the civil
service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the governments commitment to such policies.
5.2. Illegal logging and trade: how big is the problem?
In several Asia-Pacific countries the socio-economic contribution of forestry remains poorly realized and underestimated due to benefit capture by unaccountable interests. Lack of collection of royalties
and taxes has also had the effect that markets for products from sustainably managed sources have been undercut while mounting social and environmental costs have been overlooked. In particular,
uncontrolled logging has resulted in extensive environmental damage and resources supporting subsistence needs of rural populations have been removed, often without recompense.
How serious are illegal logging and trade in the region? While reliable figures are not available, there is general consensus among informed observers that the extent of the illegal timber trade is substantial
Mir and Fraser 2003; Rosander 2008. Schloenhardt 2008 p3 stated:
The true extent of this market is unknown due to the clandestine nature of the illicit trade and due to the difficulties of distinguishing between legally and illegally
sourced materials. However, estimates about the magnitude of the illicit trade are alarming with some sources suggesting that up to 73 percent of timber exported
from Indonesia and 35 percent of timber exported from Malaysia is sourced illegally.
1
See: Kaufmann et al. 2009.
