Forest degradation Broader socio-economic and political causes

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3.1.4 Demand on woodfuel

Woodfuel fuelwood and charcoal is still a major source of household energy, particularly for the large rural population. Although urban households have more opportunities to use electricity or gas, there are still many limitations and blackouts in urban areas. Based on the household energy consumption of different types of energy for the period 1990-2010 and the projection for 2020 estimated by the Energy Planning Department; FAO 2009, the share percentage of fuelwood and charcoal consumption significantly decreased over time from 84 percent in 1990 to 69 percent in 2010, and is projected to be 58 percent in 2020. However, due to the growing population it is unlikely to decline in volume. MOECAF has estimated that woodfuel consumption per annum per household is about 1.4 cubic tons t 3 for urban households and 2.5 t 3 for rural households. With this rate and in combination with the increasing population rate, MOECAF estimates that demand on woodfuel will increase from 17.5 million t 3 in 2001 to 20 million t 3 in 2020. This woodfuel demand or removal is 12 to 13 times higher than the average annual harvesting of 300 000 tons of teak and 1 200 000 tons of hardwood total 1.5 million tons per annum for the period 2006-2012 MOECAF. MOECAF has estimated that 90 percent of total wood removal from forests is due to woodfuel production. People living in both rural and urban areas rely on forests to meet this huge woodfuel demand. This trend will continue unless household energy demand is substituted with other energy sources or sustainable forest management practices are implemented to meet rural wood energy needs.

3.1.5 Settlements and urbanization

As the population increased over time, demand for new homes and farming areas has also increased. For most of the rural poor who live in about 65 000 villages, the easiest option to meet this demand is encroachment on nearby forests. Some villages extend into the forests, and some even establish new subvillages hamlets in nearby forest areas. Every new household requires additional farmland or grazing land for livelihood needs. This has resulted in clearance of additional forest lands near their new households or hamlets. Table 6 shows the number of hamlets, households, populations and their farmlands settled in the RF and PPF of Myanmar in 2012. Table 6. Settlements in RF and PPF Source: Forest Department 2012b. Urbanization and industrial zone developments in and around large city areas such as Yangon, Mandalay and Dawai, are also leading to deforestation and forest degradation. Along with urbanization, demand for forest products such as fuelwood, charcoal, polesposts for households and infrastructure development has increased. These urban demands make long-term and intense negative impacts on nearby forests.

3.1.6 Mining

Mining is an important and promising sector for Myanmar’s economic growth MOM 2009-2010. Natural gas, oil, precious stones, gold and copper are the most important natural resources for local and foreign investors. The country is also well endowed with a variety of mineral resources such as tin, lead, zinc, tungsten, silver and iron. Industrial minerals such as barite, gypsum, limestone, dolomite, bentonite and fireclay are also found. Conversely, poorly managed and supported mining sites lead to environmental disturbances that extend well beyond the extent of mineralized areas. Mining activities, especially with open pit systems, usually convert green land to bare land that is often polluted with hazardous materials. They also contaminate air and water in nearby streams and rivers. In most mining sites of Myanmar, environmental considerations and operations to repair environmental damage, including forest degradation and deforestation, are lacking. Myanmar is now trying to set up environmental standards for mining activities, which are welcomed by environmental and forest conservation groups.

3.2 Underlying causes

3.2.1 Population growth

Myanmar has a relatively low population density compared with many countries in the ASEAN region. The 2005-2006 population was estimated at 55.4 million which is an increase from 40.78 million in 1990-1991. Population increase, especially the rural population, is of considerable concern, as they are highly dependent on forest resources, and directly influence fuelwood removal, illegal cutting, shifting cultivation, agricultural expansion and so forth, ultimately leading to deforestation and forest degradation. Number of hamlets 1 604 Total 33 983 Other land use 13 453 Land for farming 304 835 Land for households 12 695 Total population 894 266 Number of households 193 074 Settlements in RF PPF ha 87

3.2.2 Poverty

Despite its wealth of natural resources, Myanmar remains a poor country with a Human Development Index ranking of 149 out of 187 countries. Myanmar’s population lives below the poverty line and the rural poor account for 87 percent of total poverty. Poverty, forest and land degradation, and human-induced climate change are associated in a vicious cycle. Heavy dependence on forests due to poverty results in deforestation, land degradation and self-destruction of the microenvironment as well as erratic climatic conditions. Again, severe environmental and climatic conditions cause greater poverty and more destruction.

3.2.3 Weak law enforcement

The new Myanmar Forest Law has been enacted since 1992 followed by the Forest Rules in 1995. Both were prepared in harmony with the Forest Policy, 1995. In addition, the Protection of Wildlife and Wild Plants and Conservation of Natural Areas Law, 1994 was ratified in 1994. The Community Forestry Instructions CFI was also issued by the Forest Department in 1995. One of the basic principles of the Forest Law is: •฀ To safeguard against degradation and depletion of natural forests and to conduct afforestation in areas where natural forests are depleted. However, in reality the provisions of all forestry-related forest laws, rules and instructions cannot be fully enforced due to: •฀ Conflict of interests between forest sustainability and income from the forestry sector for national development; •฀ Policy inconsistency between the forestry sector and other economic sectors including agriculture, livestock and mining; •฀ Demand on forest products is still increasing and there are very few measures to replace them with alternatives e.g. natural gas instead of woodfuel and steel, brick and cement instead of timber; •฀ Poverty forces local communities to defy the forest laws to make additional income from forests; •฀ Inadequate salaries and facilities encourage authorities to become involved in corruption. The same phenomenon can also be observed in all other interrelated sectors, providing room for all illegal or inappropriate activities that lead to destruction of forests and the natural environment.

3.2.4 Conventional forest administration and lack of people’s participation

Following the British annexation of lower Myanmar, systematic forest administration began in 1856 under police-style control and surveillance of forest areas, aiming at long-term commercial timber production from reserved forests. The forest reservation process severely constrained local communities from continuing their traditional free access to forests. Although rights and privileges for forest dependents and forest dwellers were mentioned in forest working plans, all of these management plans and regulations were conducted in a top-down fashion, without any negotiations and consensus with local communities. Police-style forest management continued after independence in 1948, and during almost half a century of authoritarian rule 1962-2011, conditions deteriorated. Government policy favoured exploitation of forests for economic growth that was not in consonance with both scientific management and local requirements. This separation of local people from the forest administration led the former to become defiant and undertake activities labeled as illegal. Misunderstanding and mistrust between authorities and communities over time led to strife and resulted in the failure of forest administration; this further exacerbated forest degradation and deforestation.

3.2.5 Insufficient budget

Myanmar’s current national accounting system does not report environmental-related expenditure as a separate element. Financial resources for environment and natural resource management are allocated to sectoral ministries or agencies. According to the national budget’s sectoral breakdown in 2013-2014, out of total expenditure of US7 864.5 million, only US519 million about 6.6 percent was allocated to institutions most closely linked to the management of natural resources agriculture, forestry, livestock, fisheries. Under MOECAF, the highest expenditure nearly 97 percent in 2012- 2013 went to the MTE, which deals with timber extraction and export. However the MTE does not expend its resources for rehabilitation and conservation. The combined expenditure of the departments FD+DZGD+ECD which are responsible for forest conservation and reforestation efforts is only about 3 percent of the total expenditure of the whole ministry. Moreover, average Overseas Development Assistance ODA received by Myanmar is only about US2.00 per capita per annum. Under the circumstances, the amount allocated to the environment, forestry etc. is practically non-existent. Under such financial limitations, MOECAF can barely fulfill its ambitious targets on forest conservation and rehabilitation through the FD, DZGD and ECD.

3.2.6 No proper all-inclusive land-use policy

One policy-related issue which apparently hinders forest conservation and rehabilitation efforts is arbitrary land use. The absence of clear land-use policy and planning has several impacts on forest management including loss of forest cover and low productivity.