Page 1 Document of THE WORLD BANK FOR OFFICIAL USE ONLY INTEGRATED FORESTRY DEVELOPMENT IN THE MIDDLE EAST AND NORTH AFRICA May 30, 2003 Water, Environment, Social and Rural Development Department 30899 Page 2 ii Middle East and North Africa Region Page 3 iii TABLE OF CONTENTS Page I. Background...........................................................................................................................................1 The Global Public Goods Funds Imitative................................................................................................1 Objectives and Expected Output...............................................................................................................1 II. The MNA Region.................................................................................................................................2 Status of Forestry........................................................................................................................................3 Importance of Forestry...............................................................................................................................5 Forest Management.....................................................................................................................................7 The Forestry Institutions............................................................................................................................8 Government Strategies ...............................................................................................................................9 Forestry Development : Potential and Constraints ...............................................................................11 Potential ........................................................................................................................................11 Environmental Benefits...............................................................................................................11 Direct Productive Functions........................................................................................................12 Constraints....................................................................................................................................14 Addressing the constraints .......................................................................................................................16 III. Next Steps...........................................................................................................................................20 Table 1: Land area, population trends and country economic indicators.............................................2 Table 2: Forest Statistics on the Bank Client Countries in the MNA Region........................................5 Table 3: Consumption of, and Estimated Imports of Wood Products in 2000....................................13 Table 4: Land Area And Rural Population In Tunisia And Morocco .................................................19 Table 5: Land Ownership Statistics In Morocco And Tunisia..............................................................21 Box 1: Integrating Forestry Development Into The Broader Natural Resources Management Agenda...................................................................................15 Box 2: Categories of land ownership.......................................................................................................20 Box 3: Inequitable Land Distribution And Fragmentation...................................................................22 Annex 1: Land Ownership and Integrated Forestry Development: The Case of Morocco and Tunisia .............................................................................................19 Addressing the Constraints......................................................................................................................24 Next Steps ................................................................................................................................................25 Page 4 iv Abbreviations and Acronyms ESW Economic and Sector Work FAO Food and Agriculture Organizations of the United Nations GDP Gross Domestic Product GPG Global Public Goods Funds Imitative IFPRI International Policy Research Institute MNA Middle East and North Africa Page 5 v Preface This informal Policy Note was prepared by a Team comprising Jean-Marc Bison, Agricultural Economist, FAO, T. Ngaido, Land Tenure Specialist, IFPRI and Idah Pswarayi-Riddihough, World Bank, Task Team Leader and reviewed by John Spears, ARD and John Bruce, LEGEN. Petros Aklilu, Sector Manager provided overall guidance. This note is intended to form the basis for dialogue on integrated forestry issues in MENA with particular reference to land ownership in Morocco and Tunisia. We hope the note will trigger the need for establishing a regional strategy and development for the fragile Natural Resources Management in MENA region. Letitia A. Obeng Sector Director Water, Environment, Social and Rural Department Middle East and North Africa Region Page 6 1 I. BACKGROUND The Global Public Goods Funds Imitative (GPG) 1. This Policy Note discusses the status of Forestry in the Middle East and North Africa Region (MNA) of the Bank. The Policy Note is a product of the FAO Investment Center in Rome 1 , the International Food Policy Research Institute (IFPRI 2 ) and the Bank 3 . Experience in natural resource management shows that to adequately address sustainable development, solutions must go beyond any single sector and be cross-sectoral. They must also go beyond technical solutions to include legal and policy frameworks. In the MNA Region, a large percentage of the population lives in rural areas on primarily small pieces of land and in the absence of other sources of revenue to supplement their income. Also because many do not own their land, they are without the means to improve their small land areas to increase output and revenues, thus creating a dependence on the natural resources. Land ownership, as a factor having a potential impact on integrated forestry development, is discussed in Annex 1, using Morocco and Tunisia as illustrations. 2. This Policy Note was made possible through funding provided by the GPG who recognized that to implement a new strategic approach to forests would require a broadening of the Bank’s coverage of forest issues resulting in these issues being incorporated more effectively into country assistance strategies, factored into large scale Bank engagements in cross-sectoral programs which can impact upon forests (rural development and infrastructure), and built into economic adjustment, poverty reduction support programs and similar economy-wide activities to improve outcomes from forests. Moreover, to re-engage in activities focused more directly on such issues will require a more proactive policy and strategic approach, involving the removal of some of the disincentives noted by OED. 3. Over the last 2 decades, the Bank’s involvement in forestry has been gradually declining. GPG funds were awarded to regions interested in initiating Economic and Sector Work (ESW) as an initial step to increasing Bank assistance for forestry activities. As these funds were mainly for exploratory purposes, it was decided to carry out a short analysis on land issues in Morocco and Tunisia, because the issue is linked to forestry development and to integrated natural resource management as a whole, and must be addressed to improve rural development. In addition, the Bank has largely remained uninvolved in land tenure issues in Morocco and Tunisia although there is a high potential for the Bank to add value given its significant knowledge on land issues. 4. In addition to funding these exploratory analyses, GPG funds were also intended to result in three key activities: (a) develop demand by building interest in forest sector investments through ESW, and subsequently working with the governments to develop appropriate policy, institutional and related inputs. In the recent decade, forest related ESW has declined precipitately from more than $3 million to approximately $850,000 per annum. This trend will have to be reversed if the awareness and potential of forests and the benefits they offer are to be realized; (b) catalyze engagement and investment. Identify or develop instruments that have flexible funding for forestry activities, and for financing stakeholders, provide consultations as part of the process; and (c) build Partnerships to increase participation – as well as to enhance the Bank’s own ESW work. Building the level of knowledge of all agencies involved to increase development effectiveness. Objectives and Expected Output 5. The purpose of this Policy Note is to assess the status of forestry in the MNA Region which would then be used as a precursor to preparing a Regional framework for integrated natural resource management. This framework would serve to build momentum and consensus toward appropriate 1 Jean-Marc Bisson, Agricultural Economist, FAO 2 T. Ngaido, Land Tenure Specialist, IFPRI 3 Idah Pswarayi-Riddihough, World Bank Task Team Leader Page 7 2 reforms for sustainable development with the countries involved. The present Policy Note is aimed at giving an overview of the situation concerning forestry in the MNA Region. Land ownership, given its potential impact on integrated forestry development, is also discussed. This paper is intended for internal distribution for knowledge sharing purposes and it has not been discussed with the countries concerned. However, this could be done at a later stage depending on the follow-up given to the Policy Note. Nevertheless, the conclusions drawn from this Policy Note are highly informative and sufficiently clear on next steps. II. The MNA Region 6. The MNA Region, as defined in this Policy Note, covers 17 low and middle-income countries: Algeria, Bahrain, Republic of Egypt, Islamic Republic of Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates and the Yemen Republic. Algeria, Morocco and Tunisia make up the Maghreb (meaning sundown) while the others constitute the Mashreq (meaning sunrise). 7. In an area covering over 1.1 billion ha, MNA supports approximately 300 million people, some 40 percent of whom live in rural areas. Table 1 below presents the estimated statistics on land area, population and economic indicators for the MNA countries during the period 1994 through 2000. The national economies are quite diverse from relatively rich oil-producing to very poor countries. For 2000, the estimated GDP per capita varied from US$3,837 in Lebanon to US$486 in Yemen. According to the fragmented data available, it would seem that only Egypt, Iran, Lebanon, Malta, Syria and Tunisia have GDP growth rates that are higher than their population growth. Table 1. Land area, population trends and country economic indicators Country Land Area Population (2000) Economic Indicators Total Total Density Average annual growth Rural populati on GDP per capita Agriculture (% of GDP) GDP per capita average annual growth 1998 1994-2000 2000 1900-2000 000 ha millions Pers/km 2 % % US$ % % Algeria 238,174 30.40 13 1.7 40 1,753 9 -0.1 Bahrain 69 0.69 1,000 3.6 8 Na Na Na Egypt 99,545 63.80 64 1.9 55 1,547 17 26 Iran 162,201 64.00 39 1.6 38 1,547 20 1.9 Iraq 43,737 23.30 53 23 23 Na Na Na Jordan 8,893 4.90 55 3.1 26 1,694 2 1.0 Kuwait 1,782 2.00 112 4.6 3 Na Na Na Lebanon 1,024 4.30 420 1.6 10 3,837 12 4.2 Libya 175,954 5.50 3 22 12 Na na Na Morocco 44,630 28.70 64 1.7 44 1,167 13 0.4 Oman 21,246 2.40 11 24 16 Na Na Na Qatar 1,100 0.58 53 26 7 Na Na Na Saudi Arabia 214,969 20.70 10 26 14 Na Na Na Syria 18,377 16.10 88 27 45 1,056 26 29 Tunisia 16,362 9.60 59 1.4 34 2,031 12 3.0 United Arab Emirates 8,360 2.90 35 4.0 14 Na Na Na Yemen 52,797 17.50 33 28 75 486 15 23 Total 1,109,220 297 20 40 Source World Bank Country Data : Key: na = not available 8. MNA includes a diversity of ecological environments ranging from arid and semi-arid areas with low/variable rainfalls to the more humid areas having a Mediterranean climate characterized by long/dry Page 8 3 summers and mild/wet winters. These latter areas account for less than 10 percent of the land but almost half of the population, while the drier areas account for nearly 90 percent of the land but less than 30 percent of the population. 9. The main crops of the region (wheat, barley, legumes, olives, grapes, fruits and vegetables) are grown during the wetter winter period while irrigated crops are grown all year round 4 . Livestock (mainly sheep and goats) is an important feature of many farming systems, from extensive pastoralism to feedlots in peri-urban agriculture. A limited supply of water – and/or lack of access– both in terms of quantity and quality, reduces considerably the potential for increasing agricultural production. 10. Of the total population, probably more than a quarter are directly dependant on agriculture, including forestry. However, the importance of agriculture in the national GDPs varies greatly depending on each country. For instance, in 2000, the agricultural GDP ranged from 2 percent of the total in Jordan to 26 percent of the total GDP in Syria. Furthermore, unemployment and/or underemployment are pervasive in almost all the MNA countries which has tended to encourage emigration to other countries, especially Western Europe 5 . 11. The Region is also characterized by rapid increases in the population, essentially due to improved child survival rates and lower adult mortality. However, this has continued to place undue stress on the limited natural resources. While it is estimated that only 2 percent of the population falls below the poverty line of US$1 per day, more than 30 million people would still be undernourished 6 . Poverty is more widespread in rural areas than urban areas and it concerns primarily small farmers and pastoralists whose income is constrained by low productivity and few crop/livestock options due mainly to limited soil/water resources, unpredictable rainfall 7 , and substantial resource degradation. 12. Population . Population growth rates in Morocco and Tunisia are relatively low when compared to other MNA countries 8 . Nevertheless, the rural population (and livestock) is increasing in number, which is increasingly putting pressure on land tenure systems given the limited amount of arable lands available. In addition to more cropping in marginal areas and environmental degradation, population pressure is also blamed for being the fundamental cause of the numerous land disputes and excessive co- ownership (both mostly unrecorded) as well as land fragmentation. Migration to urban areas is not a viable solution since there are few additional sources of jobs available in the cities. Therefore, planning and economic growth are the lasting solutions. Status of forestry 13. General description . The definition of forests could be drawn from the type of ecosystem, utilization and/or tenure. The term forests in this Policy Note is used to refer to both commercial type timber, such as that found in pure stands of natural or planted forests, and to mixed woodlands, shrub- lands, plantations along watersheds, esparto grass and permanent pastures. In general, the MNA Region is made up of low forest cover countries, i.e. with forest areas covering less than 10 percent of their respective territory. From the agro-ecological point of view, four main ecological forest zones are recognized: 4 There is evidence that in Roman times, much of North Africa enjoyed sufficient rainfall to support widespread rainfall cultivation but climatic conditions have deteriorated since then. 5 According to the ILO, the unemployment rate in the late 1990s was estimated at 29 percent in Algeria, 22 percent in Morocco and 8 percent in Egypt. High birth rates and diminishing government hiring are the main factors. 6 Farming Systems and Poverty, FAO/WB, 2001. 7 Also wide temperature variations (both seasonal and diurnal), high and hot dry wind in certain periods of the year, and high evapo-transpiration. 8 The overall average annual growth rate for the MNA group is 2 percent (see Forestry Sector Note). Page 9 4 (a) The desert zone covering the southern areas of the Maghreb and extending eastwards to include parts of Jordan, Iraq, Syria, the Arabian Peninsula and parts of Iran. This zone has practically no forest vegetation of economic/environmental significance; (b) The arid zone covering parts of North Africa, south of the Atlas, some plateaus within this mountain range itself, and areas which extend almost to the coast of the Mediterranean and Red seas. This zone includes vast sections with patches of land devoid of vegetation but also tracts of grasses, dwarf shrubs and occasional trees; (c) The semi-arid zone covering the North African and Eastern Mediterranean coasts, parts of the high plateaus of the Atlas, the Zagros Mountains and parts of the Arabian Peninsula. The forest vegetation is the typical Mediterranean flora of evergreen trees and bushes, maquis, garigue and batha. Olive trees, carobs, and oaks (mostly cork) are prevalent. There are also coniferous species, mainly Pinus halepensis (Aleppo pine), Pinus brutia and Cupressus species, particularly in Syria and Lebanon; and (d) The humid zone covering part of the North African highlands, the mountainous area from the Caspian Sea to Lebanon. This zone comprises most of the surviving “old” forests, including stands of Quercus, Fagus, Carpinus, Abies, Pinus, Cedrus and Platinus . 14. In terms of forest utilization, the desert zone offers practically no option; except for limited, localized and seasonal grazing in years of exceptional rain. The arid zone has limited cropping possibilities outside the oasis and river valley. Uses are generally limited to extensive animal husbandry on pastures, fuelwood production, and the gathering of resins, medicinal and aromatic plants. The semi- arid and humid zones offer several options in terms of production: fuelwood, fodder, food crops, livestock, roundwood and non-wood forest products. There is strong competition for land and water resource use, which highlights the need for and importance of planning the management and exploitation of the natural resources. 15. The total forest area, including that under permanent pastures is over 347 million ha with the largest areas in Iran with approximately 11.5 million ha and Morocco with almost 9 million ha. Areas under permanent pastures are greatest in Saudi Arabia, followed by Iran, Algeria, Morocco and Libya. Table 2 below shows forest statistics and the annual change in forest cover between 1990 and 2000. Since 1990, the national forest areas have increased slightly and particularly in Algeria, the United Arab Emirates, Libya, Egypt and Tunisia largely due to an expansion of plantation areas. On the other hand, forest areas have regressed in Morocco and Yemen as many are converted to agricultural land. The FAO estimates that the total standing volume and above ground biomass (in forests and trees) in MNA is close to 900 million m³ and 1.5 billion tons respectively. The extent of the natural forest cover is of course closely related to the rainfall. The total plantation area for 2000 is estimated at 4.6 million ha which represents 27 percent of the total forest area. The three countries with the largest forest areas i.e., Iran with 2.3 million ha, Algeria with 718,000 ha and Morocco with 534,000 also have the largest plantation areas 9 . Among the cultivated trees, eucalyptus, pines, acacias, poplars and casuarinas are currently the most commonly used. Table 2 presents figures on forest coverage, including permanent pastures and rural population densities. 9 With the exception of Egypt, these are also the countries with the largest populations. Page 10 5 Table 2: Forest Statistics on the Bank Client Countries in the MNA Region Country Area ’ 000 ha Permanent pasture ’ 000 ha Forest and wooded area ’ 000 ha Annual change in forest cover (000 ha) (1990-2000) Percentage of the population living in rural areas 1999 Rural Pop. Density per sq. km 2 Algeria 238,174 34,467 3,982 27 41.5 166 Bahrain 71 4 - Ns 8.1 Na Egypt 100,145 - 34 2 54.3 1,167 Iran 163,319 44,000 11,437 Ns 38.9 137 Iraq 43,832 4,000 192 Ns 23.6 Na Jordan 8,921 791 70 Ns 26.4 378 Kuwait 1,782 136 2 Ns 2.5 Na Lebanon 1,040 16 80 Ns 10.7 264 Libya 175,954 13,300 600 5 12.8 Na Morocco - 21,000 8,970 -1 45.4 145 Oman 30,950 1,000 - Ns 17.8 Na Qatar 1,100 50 Ns 7.8 Na Saudi Arabia 214,969 170,000 1,200 Ns 14.9 Na Syria 18,518 8,285 484 Ns 46.0 153 Tunisia 16,361 4,000 668 1 35.2 119 United Arab Emirates 8,360 305 3 8 14.5 Na Yemen 52,797 16,065 2,000 -9 62.9 714 Total 1,076,293 317,419 29,722 Source FAOSAT Database, 2000 : Key: na = not available Ns = not significant Importance of forestry 16. Economic. There are no consolidated official statistics on the importance of the forestry sector in the economies of the MNA countries. Past estimates suggest that the share in forestry could be of the order of 12 percent of agricultural GDP (2 percent of national GDP) in Morocco and 7 percent of agricultural GDP (1 percent of national GDP) in Tunisia. Statistics on trade are more readily available. Approximately 2 million m³ of wood products were exported from the MNA Region in 2000 of which 613,000 m³ were from Iran, 563,000 from Egypt, 252,000 from Morocco and 248,000 from Tunisia. In the same year, the region also imported wood products which cost over US$4 billion; mainly from Saudi Arabia, Egypt and Iran. Furthermore, it is estimated that regional exports total more than US$100 million per year for non-wood forest products particularly cork from the Maghreb but also medicinal and aromatic plants from several other countries. 17. Many development activities in the forest generate jobs, incomes and economic benefits all of which are extremely difficult to quantify. These benefits (values added) are not reflected in the national accounts and the overall contribution of forestry to the economy is therefore systematically underestimated. Moreover, if one considers the “opportunity costs” related to the deterioration and/or reduction of the forest areas, even more is at stake from an economic viewpoint. For illustrative purposes, a recent externally-financed national study in Algeria estimated that the negative impact of deforestation, in terms of loss of wood and non-wood forest products, is equivalent to 0.05 percent of the national Page 11 6 GDP 10 . However, adding the costs in terms of environmental degradation – essentially agricultural/ biodiversity loss – would bring this figure to over 1 percent of GDP or more than US$0.5 billion for 2000. In Iran, for the Caspian region alone, losses due to wood damage are estimated at US$154 million per year. In Lebanon, the estimated annual cost of environmental and natural resources degradation is reportedly around US$300 million. 18. These calculations probably underestimate the total cost since there is a point beyond which deforestation would cause serious, often irreversible environmental damage to a country when a critical (minimum) amount of forest cover/biomass no longer exists. In this case, the process of erosion and desertification would continue unremittingly, critically affecting fragile ecosystems as well as the economy. There would be large-scale destruction of woody vegetation, degradation of croplands, water logging and salinization of irrigated lands, deterioration of rangelands, encroachment of mobile sand bodies and declining availability/quality of water supplies. Floods, landslides, the destruction of human habitats and other environmental disasters could follow. 19. Environmental. Forests are essential for preventing erosion and desertification, protecting scarce water and soil resources as well as conserving biological diversity 11 . They ultimately reduce the risk of floods, landslides and other environmental disasters. The role of trees in regulating water flows and therefore in helping prevent soil erosion is well known. Equally known is their role in controlling sand erosion, particularly close to the desert where shifting dunes hamper agricultural production and affect villages, for example in Egypt and Iran. Moreover, the use of windbreaks and shelterbelts around farmlands is standard practice in most of the Region 12 . Finally, olive and fruit trees are found in many agricultural fields, especially in the arid areas of the Maghreb , providing economic as well as environmental benefits. 20. Biodiversity. Forests are recognized as habitats for significant biodiversity. For example, Algeria has four natural reserves (36,800 ha), seven National Parks (37,000 ha) and four game reserves (50,000 ha). At least 1 million ha of wetlands contain biologically important fauna/flora and serve as a refuge for migratory wildfowl. After Turkey, Morocco is the second most biologically-diversified country in the Mediterranean basin, with some 4,000 species of vascular plants, 40 percent of which are endemic. Iran is the most biologically diversified among the South-Western Asian countries; with 7,000 plant species, 20 percent of which are endemic, including a wide range of medicinal/aromatic species and 500 bird species. Generally speaking, the conservation of plant and animal genetic resources, and the preservation of samples of ecosystems as reservoirs of species diversity are very important for the advancement of scientific knowledge. 21. Fuelwood, Fodder and Shade. According to various surveys, fuelwood accounts for a substantial part of the overall energy consumption in most MNA countries; at least 70 percent in the rural areas of Algeria, Morocco, Tunisia, Egypt and Yemen. Together with non-wood forest products, fuelwood is particularly important for the poor people living in the forests and/or the vicinity. Furthermore, forests and woodlands constitute an important source of fodder for livestock, particularly during periods of drought. For the Maghreb , livestock production constitutes a large part of the agricultural GDP – according to the FAO, at least 50 percent in Algeria for 1995, 25 percent in Morocco and 30 percent in Tunisia 13 . A similar situation is found in the Mashreq . Iran and Saudi Arabia have large livestock populations representing major income in very dry areas where agriculture is limited and supplementary income in areas where rainfall is better. The rangelands, including forests grazed, cover 10 Plan d’Action National pour l’Environnement et le Développement Durable, Janvier 2002 . 11 The role of the forests as carbon sink is also important although still not well understood. 12 In the lowlands of Egypt, Iraq and Libya, windbreaks and shelterbelts are used to protect crop production from dry winds. 13 There are an estimated 50 million sheep and goats in the Maghreb where water and fodder represent a daily concern. Page 12 7 almost half to over half of the countries’ territories. In Yemen and Algeria, a large quantity of households depend on livestock production, whose feed is supplemented by procured fodder. Forest Management 22. Almost all the forests in the region are managed by the public sector. Algeria, Morocco and Tunisia prepared national forest inventories in 1982, 1995 and 1996 respectively. Tunisia and Algeria are updating their inventories using mapping technologies and sampling designs. For Iran, a survey based on satellite images, aerial photographs and a field survey was carried out for the Caspian forests and central Zagros in 1999. Yemen carried out an inventory in 1993 using satellite imagery, aerial photographs and fieldwork. For Iraq and Lebanon, information is based on surveys conducted prior to 1990. Estimates for Saudi Arabia are based on a 1994 inventory of the southwestern part of the country using aerial photographs and fieldwork. Information for Jordan and Syria is based on secondary sources of annual reports and studies. 23. According to current statistics, at the present rate of utilization, it is highly unlikely that the existing forest resources in the MNA Region can be sustained 14 . Most of the remaining natural forests are under-stocked and growth rates are modest. Their re-establishment would take many years and in many cases it is no longer possible. In addition, the dry climate of the region makes the forests vulnerable to wild fires which can be devastating 1 5 . Several attempts were made in the past to establish plantations for the purpose of replacing timber imports; the trees selected were mainly eucalyptus and pines. The growth rates were often slower than expected, essentially due to unsuitable climatic conditions and water stress. 24. As a result of this situation, forest management in most of the MNA countries is now mainly multi-purpose; protection/conservation being the main objective but wood and non-wood forest production is encouraged whenever feasible. Most of the governments in the Region are becoming increasingly aware that environment-friendly forest exploitation, when well regulated and cautiously carried out, can generate the revenues necessary to ensure better forest management. Furthermore, forest management is increasingly viewed in the broader context of natural resource management, with direct involvement from the local communities being promoted to guarantee sustainability. This trend is particularly obvious in Morocco and Tunisia where externally-financed large-scale projects are being developed with these features. 25. Since most MNA countries have a very low natural forest cover, considerable efforts have been devoted to reforestation (replanting previously forested areas) and afforestation (conversion into forest areas), mainly focusing on the protective functions of the trees. The public reforestation programs are generally aimed at protecting the watersheds, reducing soil erosion, stabilizing sand dunes and creating green spaces. Afforestation has been carried out by the public sector in the form of plantations, most of which are for protective and environmental purposes rather than productive 16 . Survival rates are generally high but growth rates and quality tend to be below expectations, partly because of the adverse climatic conditions and poorly adapted techniques. However, the plantations in the Maghreb have a reasonable financial return and they continue to be established on significant scales, but the relatively high establishment costs and inherent low productivity limit private sector involvement. 26. The extent of the forests and woodlands covered by public management plans is known for some of the Maghreb countries: more than three-quarters of the forest areas in Morocco and Tunisia (over 2.3 million ha and 380,000 ha respectively), and slightly more than a quarter (over 500,000 ha) in Algeria. 14 Utilization including firewood collection, overgrazing, conversion to agricultural lands and lack of investments in forest regeneration. 15 The average area affected by fires each year in Algeria is estimated at around 38,000 ha, close to 2 percent of the national forest cover. In Tunisia, the average area affected is more than 1,700 ha per year. 16 As already indicated, there is still a bias for “popular” species like pine and eucalyptus. Page 13 8 As already indicated, Morocco and Tunisia have benefited from a number of externally-financed projects and their forest management is relatively sound. For security reasons, forestry operations in Algeria are presently limited, as well as the necessary external assistance to help finance them. It is likely that forest management is neglected and the frequent forest fires, partly due to civil unrest, are certainly aggravating the situation. 27. In most countries, the involvement of the civil society and private sector is limited, mainly due to the Governments’ view that there is an inherent conflict between private/local interests and the wider national interests, particularly in terms of forest protection. Governments therefore tend to take a very legalistic and rigid approach to forest management 17 . Nevertheless, local problems of illegal harvesting and grazing will persist and not be resolved unless the communities involved participate directly in the formulation and implementation of the solutions. On the other hand, in several MNA countries such as Egypt and Morocco, most of the wood processing (eg: sawmilling, carpentry, manufacturing of fiberboard, particleboard and plywood) is in the hands of the private sector. However, private entrepreneurs could also intervene upstream, in forest management operations, which they could carry out more efficiently than public agencies 18 . The Forestry Institutions 28. Forest protection and exploitation were among the earliest roles of governments in the forestry sector. Gradually, the protective role expanded to include responsibilities for controlling grazing and collecting taxes. Nowadays, the main roles of governments and their relevant administrations, are: (a) Designation of forest lands and reserves, and the reciprocal power to make grants or dispositions of such lands for purposes other than forestry; (b) Regulation of forest protection and of the flow of goods and services from the forests to the society; and (c) Conservation of the forests on the grounds of safeguarding public interest. 29. Except for Morocco, which has a specific Ministry of water and forestry management ( Ministère chargé des Eaux et Forêts 19 ), every other government has assigned the forestry responsibilities to a structure within its Ministry in charge of agriculture 20 . In a number of countries, this structure is also responsible for range management, or is part of a larger structure in charge of forest and range management 21 . In some other countries, there are separate structures. For instance, Syria has a Forestry Department in the Ministry of Agriculture and Agrarian Reform, a High Commission for Afforestation and a Range Department. 30. In almost all MNA countries, the functions of the public forestry administrations cover the following areas: (a) Regulatory and advisory i ncluding advising on the legislation and the actual enforcement of forest laws; advising on the formulation of the forest policy and the responsibility of its implementation; assisting farmers and communities in establishing tree plantations for the protection of crops, livestock and human habitats; interacting with other governmental and non- 17 See paragraph 36 for a discussion of the legal constraints. 18 In the Maghreb , private entrepreneurs are involved in forestry operations on a contractual basis. 19 It is under the Ministère de l’Agriculture, du Développement Rural et des Eaux et Forêts 20 For example: General-Directorate of Forestry within the Ministry of Agriculture and Fisheries in Algeria and within the Ministry of Agriculture in Tunisia. 21 For example: Forest and Range Organization within the Ministry of Jehad in Iran, and General-Directorate of Forestry and Rangelands within the Ministry of Agriculture and Water Resources in Yemen. Page 14 9 governmental institutions in areas or sectors of concern to forestry such as land use, environment, rural development, wildlife, forest industries, forest products, trade and marketing; (b) Forest research and education are normally assigned to specialized research and/or training institutions, often associated with general research and/or educational public institutions in the country 22 ; (c) Development and production including sectoral planning; programming; monitoring and evaluation; coordination with planning and treasury departments and with local public administration bodies; collection and analysis of statistics; feasibility studies for investments; technical development of forestry practices such as: establishment; tending; inventorying; management; harvesting of forest crops; community forestry, agroforestry; forest fire prevention and suppression; forest grazing and range management; desertification control; wildlife management; national parks and protected areas; and urban forestry and forest recreation; (d) Forest products processing, marketing and utilization are often entrusted to public forestry administrations or to parastatal organizations and although not prevalent, the private sector can also be involved in the harvesting and processing stages. 31. Forestry Research. The main characteristic of forestry research in almost all countries is that it is not directly “linked” to the public forestry administrations and is often part of a structure with a broader mandate. Consequently, the research subjects do not always reflect the priorities of the administrations and the results are not always directly relevant and fully applicable. As a result, forestry research is neglected and funding is limited. Most of the existing research focuses on technical problems and developing environment-friendly techniques is not given high priority. An additional complication is that practical solutions and packages are normally site specific, difficult, or they take time to replicate from one zone to another, and their impact is often not immediate – e.g., contour bunding and terracing with vegetative techniques. Government Strategies 32. In MNA, the position taken by the Governments towards forestry development is strongly influenced by the scarcity and fragility of their forest resources. Understandably, the national forestry policies tend to emphasize conservation/protection as well as reforestation and afforestation. In the Maghreb countries: Algeria, Morocco and Tunisia have formulated national forestry policies. Libya has no written policy although the fact that almost half of its limited forest area (slightly less than 360,000 ha) is in plantations suggests that afforestation is a priority, reportedly to meet its comparatively large domestic needs in fuelwood (more than 0.5 million m³ for around 5.5 million people) and also for sand dune fixation. In Algeria, there is an urgent need to update and revise the national forestry policy and the national forestry program initiated in 1992. However, because of the ongoing civil strife, the Algerian Government is probably not ready to give attention to these matters. 33. In the Mashreq countries, only Iran has a national forestry policy whereas Saudi Arabia and Yemen are in the process of formulating their own 23 . Saudi Arabia has also stated its intention to prepare a country-wide strategy 24 . None of the countries have a fully-fledged national forestry or action program although Iraq, Lebanon and Syria have initiated forestry programs in the past 25 . By far, Iran has the 22 For example: The National Institute for Forest Research in Algeria and the Central Research Institute in Iran. 23 In the case of Yemen, the intention is to revise a now obsolete policy formulated prior to unification. 24 FAO is assisting Saudi Arabia in policy and strategy formulation, focusing on the protective role of the forests and their recreational potentials. 25 Egypt has an afforestation and forestry plan to assist in preventing soil erosion, curbing air pollution, and protecting cultivable lands and human settlements. Page 15 10 largest forest area in the region with focus placed on fighting erosion and desertification 26 , reducing the use of fuelwood and air pollution, and biodiversity conservation. Iran is also very active in terms of promoting forestry development at the regional level. For example, Teheran was the site of the 1999 International Expert Meeting on special needs for developing countries with low forest cover and unique forest types. This meeting launched the “Tehran Process” aimed at promoting cooperation among 67 low forest cover countries 27 . 34. National Forestry Programs. In 2000, Morocco prepared a national forestry program placing priority on: (a) soil and water conservation; (b) socio-economic development of the forest dwelling populations; (c) biodiversity conservation; (d) wood production for processing and handicrafts; and (e) recreational services. Based on this document, the Bank is now assisting the Moroccan authorities to prepare an integrated rural development program for forestry and peri-forestry areas ( Programme de développement rural intégré des zones forestières et périforestières) covering 18 communes in four of the 40 provinces of the country. In the case of Tunisia, a draft national forestry and pastoral development strategy was prepared for which the main orientations are: (a) increasing forest cover; (b) improved use of natural resources; (c) greater involvement of the private sector; and (d) decentralization of the forestry activities. Also emphasized is local community involvement to improve the potential for sustainability. 35. Legal Framework. Most of the national laws governing forests specify that they are in the public domain 28 . Some laws classify forests into broad categories by function: productive, protective and others such as national parks (e.g., Algeria, Morocco and Syria). In many of the countries, matters like conservation and environment may be governed by the forest laws (Tunisia, Morocco, Syria) or by other general (Algeria) or specific laws (Lebanon). In Morocco, the basic law (Dahir) vests the relevant Ministry with the responsibility of their management and gives usufruct rights for use by populations living in and around the forests for grazing and gathering of forestry products for personal use, within limits determined by the Ministry. The Tunisian Forestry Code determines the national domain, promotes forest conservation, specifies the forest users’ rights and establishes the rules for environment/wildlife protection. Yemen’s Forest Law emphasizes land conservation, woodland management and tree planting whereas, Syria’s Forest Law does not define clearly the state forests but provides for the protection of flora and fauna. 36. Legal frameworks vary from weak (e.g., Syria) to comprehensive (e.g., Lebanon). New laws are often super-imposed over old laws without ensuring consistency, making their implementation difficult. One main weakness in most countries is that the participation of local communities and the private sector in forestry is still not explicitly mentioned in the laws, nor is it clearly encouraged. In addition to the administration’s reluctance to involve local communities in the preparation and implementation of management plans, there are often other restrictions, e.g., on the utilization of trees once planted on land deemed to be suitable to forest establishment where permission must be sought from the Government to harvest. Also, there are numerous legal and bureaucratic obstacles for private contractors to participate in forestry operations. Furthermore, the rules set for awarding contracts to small-scale contractors are often rigid thereby disqualifying or practically eliminating many contractors. Examples are the use of large minimum bidding lot sizes or the requirement that bidders have access to large quantities of seedlings where government nurseries will not sell seedlings to individual contractors. The high subsidies offered to government agencies also makes it difficult for private entrepreneurs to compete. 26 All the countries are signatories to the Convention for Combating Desertification. Much of the emphasis so far has been on afforestation and establishing shelterbelts/windbreaks in critical areas. 27 The progress of the Teheran Process is seriously hampered by a lack of financial resources. 28 Less than 10 percent of the areas is private in Algeria, about 5 percent in Tunisia and 3 percent in Morocco. However, Yemen does not have gazetted forests, most are owned by individuals and communities. Page 16 11 37. Revenues Generated from Forestry Resources. Revenues from forestry exploitation (e.g., sales of timber) normally go to the national Treasury or to the umbrella public agency under which the forestry administrations fall which then re-allocates a budget. Although most of the revenues generated by Morocco also go to the Treasury, a portion of these revenues is allocated to Communes in the forest areas for the development of local infrastructure and other activities. Unfortunately only a small fraction of these funds are spent on the activities for which they were originally targeted. There is need to instill some discipline in the spending habits of the Communes. In summary, it is safe to say that in all countries the size of the budget allocated is not proportionate to the magnitude of the revenues generated. Consequently, the administrations have few incentives to be cost-efficient and/or to improve the quality of forest products. Forestry Development : Potential and Constraints Potential 38. In order to discuss the potential and constraints of forestry development, it is important to cast back to the definition that has been used for forestry in this Policy Note, [forests in this paper will be used to refer to both commercial type timber, such as that found in pure stands of natural or planted forests, and to mixed woodlands, shrub-lands, plantations along watersheds, esparto grass and permanent pastures]. This integrated approach is inevitable given the close interdependence of people, water and land-based resources in the Region. As such, when describing the potential and the constraints to development this Policy Note refers to this broad integrated definition, thereby including the development of the peri-forestry areas which are often converted into agricultural production. To reduce pressure on forest and natural resources in general, and develop sustainable solutions to natural resources management requires a cross-sectoral integrated approach. 39. Although limited in size and productivity, forests in the MNA Region can be conserved, managed and expanded in a sustainable manner to meet the growing needs of the populations. The potential to achieve sustainability requires that efforts are concentrated on two of the key functions of the forests, environmental and direct productive functions. By order of importance, the key functions and activities which would need to be considered are: (a) The environmental benefits of the forests and trees: ¾ protecting watersheds and water courses; ¾ protecting agricultural lands and human settlements; ¾ slowing, or if possible stopping desertification; and ¾ encouraging biodiversity conservation and carbon storage; and (b) The directly productive functions of the forests: ¾ increasing the supply of fuelwood and fodder; ¾ reducing, or if possible eliminating the co untries’ dependence on imports of wood products; ¾ encouraging the exploitation and processing of non-wood forest products. Environmental Benefits 40. As discussed previously, forests in MNA have limited commercial value due to, among others things, their poor quality, inadequate sylvicultural management and slow growth rates. However, their environmental benefits are significant, particularly due to their protection of agricultural lands, watersheds, scarce water and soil resources and their prevention of desertification and conservation of biological diversity. Given the low vegetative cover in the region and its implications, forest establishment for the environmental role is, on the whole, more important than commercial forestry. Page 17 12 Despite this, forest establishment rates could be greatly improved. However, because environmental benefits of forests are difficult to assess and available data is generally inadequate and unreliable, it is difficult for the responsible agencies to justify additional budgetary resources for establishment activities and or complementary activities 29 . To improve environmental benefits, quantified data on the contribution of forests, particularly on issues such as the impact of deforestation on lower agricultural benefits due to top soil losses, reduced life of dams due to siltation will need to be available to justify appropriate budget allocations. In addition, planning for improved environmental benefits should be an integral part of rural development activities and improvements to the socio-economic conditions of the local communities to ensure ownership by the local communities. In the case of MNA, detailed analytical work in both the Maghreb and Mashreq must be carried out. Direct Productive Functions 41. Roundwood and Sawnwood. Despite the low productivity of the region’s forests, there is potential to improve their productive functions. For example, the provision of roundwood for fuelwood and processing, fodder for livestock, and non-forest wood products for general consumption. The total consumption of roundwood in the region, as estimated in 2000 was about 30.6 million m³, of which almost 90 percent is in the form of fuelwood 30 . The roundwood consumption, approximately 10 percent, is for industrial purposes, mainly sawnwood. Iran accounts for nearly one third (1.1 million m³) of the total industrial consumption, followed by Morocco (approximately 1 million m³). Furthermore, out of the 11.7 million m³ of wood products imported in 2000, close to 6 million were in sawnwood, almost double the domestic sawnwood supply. The main problem is that inadequate forest management practices often result in wood of poor quality and the local sawmills prefer to import from Central Africa and Eastern Europe. There is room to improve the quality of roundwood through improved nursery and establishment techniques, use of better genetic material, improved sylvicultural techniques and newer more modern harvesting techniques. This in turn should allow the countries to substitute a portion of the sawnwood imports with domestic sawnwood, which could in turn be cheaper and generate economic benefits to the countries in terms of jobs and revenues. These improvements should be accompanied by analytical work on the financial viability of the sawmills in selected countries together with their potential for import substitution. 42. Pulp & Paper Board . Pulp & paper board are also primarily imported, with Saudi Arabia, Egypt and Iran being the largest importers. Despite limited wood resources, the region has an active wood processing industry that includes family-owned mills, small-scale private enterprises and state-run complexes. However, there is evidence that these industries are operating far below potential capacity, primarily because of a lack of good-quality timber at affordable prices. A potential market for forest products is that for wooden furniture particularly as demand for quality furniture is growing, access to newer technologies/design is improving and the relatively low cost of labor, presents viable potential for expansion of this industry particularly in the Maghreb . With regard to sawmills, there is a need to analyze the financial viability of the industry as well as the potential for import substitution 31 . Table 3 below presents statistics on the consumption of wood products and estimated wood imports. 43. Firewood. Egypt is by far the largest consumer of firewood, using an estimated 16 million m³ a year, followed by Algeria with an estimated 7 million m³ a year, and Tunisia with an estimated 2.1 million m³ a year. These data show the importance of fuelwood in the region’s forestry sector as well as the dependence of the countries’ local populations on this resource. In most places, there is a well- organized (generally informal) network of collectors, transporters, wholesalers and retailers for the supply 29 There is ample evidence of the far-reaching negative effects of deforestation from other parts of the world, particularly from Brazil and Indonesia. 30 See statistical annex. 31 Per capita consumption of high value products in the Maghreb (like panels, paper board and printing/writing paper) is significantly higher than in the rest of Africa. Page 18 13 of fuelwood. In the short to medium term, firewood supply could be increased through reforestation and/or establishment of plantations, although in the long-term, alternative sources of energy such as kerosene, liquid petroleum gas and/or electricity could be used to supplement the ever-increasing demand. 44. Non-wood forest products. The MNA Region has a long history of marketing non-wood forest products 32 such as, medicinal, aromatic and edible plants, cork, colorants and gum. Morocco and Egypt are the most important exporters of medicinal plants 3 3 . Each country exports more than US$10 million per year and the demand is growing. Cork is the most important non-wood forest product in the Maghreb . Although they hold one third of the world’s cork forest areas, Morocco, Tunisia and Algeria contribute to less than 10 percent of the world cork production of around 340,000 tons (Morocco 4 percent, Tunisia 3 percent and Algeria 2 percent). The European Union imports more than half the world’s production of cork which is used mainly for making bottle stoppers and as construction materials. Given that the substitution of cork with artificial products has definite limits and that the demand for cork remains strong, there is a likely potential to increase cork exports. Reportedly, there is also export potential for products such as honey and pistachio. Yemen exports more than US$30 million of honey and beeswax to the Gulf States each year while the Iranian exports of pistachio (nearly 56,000 tons per year) constitute one of the country’s most important non-oil export earners. Table 3. Consumption of, and Estimated Imports of Wood Products in 2000 Consumption of Roundwood Consumption of Wood products Imports of Wood Products Of which Fuelwood Industrial Production Inputs Total P&P Board Sawnwood 000’m3 000’ US$ 000’ US$ Algeria 7,074 490 29 1,090 320 124 160 Bahrain Ns Ns Ns 83 28 12 4 Egypt 16,182 452 563 3,507 857 380 255 Iran 54 1,068 613 764 458 409 24 Iraq 51 59 37 20 5 2 Ns Jordan 222 12 32 372 140 66 22 Kuwait Ns 2 Ns 228 110 46 14 Lebanon 19 9 131 600 170 87 36 Libya 536 120 37 83 34 17 9 Morocco 487 970 252 662 335 147 122 Oman Ns 5 Ns 28 17 12 1 Qatar Ns Ns Ns 49 19 6 3 Saudi Arabia 8 22 Ns 1,871 894 411 132 Syria 16 36 45 503 123 59 45 Tunisia 2,094 232 248 605 181 91 78 United Arab Emirates Ns 35 Ns 1,007 394 199 53 Yemen 302 Ns Ns 201 53 20 15 Total 27,045 3,512 1,987 11,673 4,137 2,087 974 Source: FAO Yearbook Forest Products, 2002 : Key: ns = not significant 45. Pasture. Livestock plays a significant role in the economies of most of the MNA countries and the forests constitute an important source of fodder. Furthermore, livestock populations are expanding, largely because the demand for livestock products is increasing. There is evidence that this situation is accelerating the degradation of grazing areas and pushing more livestock into forests. This situation could be improved through reforestation programs and appropriate management of access to a resource 32 Avicenna, an Iranian medical scientist, reportedly wrote a book on medicinal plants which served as a basis for western medicine until the thirteenth century. 33 However, there are 236 species of wild and cultivated medicinal plants in Lebanon and their market value is estimated at more than US$20 million. Page 19 14 that is considered a free good for the livestock producer. However, it carries an economic cost for the government which has the potential to reduce the net contribution of this servi ce to the countries’ economies, particularly if the resultant forest degradation were taken into consideration. With improved local community participation and use of community based management techniques, a balance between use and conservation should be attainable. 46. Eco-tourism. This activity is emerging as a substantial source of income for many countries in the Region, for instance in Morocco and Tunisia where many of the forests are parts of national parks. The potential for improving this service is great, although tempered somewhat by the perception of tourists that some of these countries can be unstable. Moreover, the perspective of this potential should result in a greater interest on the part of the MNA countries for protecting their terrestrial and marine ecosystems. 47. The Bank is already supporting projects that integrate a large number of these factors to increase the impact at the field level as well as the sustainability of investments in the Region. The integrated approach is expected to result in benefits to the participating local communities as well as improving the general status of the environment and natural resources. Box 1 below describes some examples of where this integration is being considered from the project conception stage. Constraints 48. Forestry development in the MNA Region is subject to a number of general constraints which are discussed below. These range from natural factors to issues of poor management of existing and/or established resources. 49. Natural. Severe aridity and limited water resources often result in woody formations that are scattered, difficult to regenerate, crooked and of limited biomass potential. 50. Social. The high growth of both the populations and livestock that are significantly or partly dependent on the forests for fuelwood and grazing hinder attempts to manage the forests on a sustainable basis. 51. Technical. Techniques presently used are generally inadequately adopted for a number of reasons, among others, because they are inappropriate, local communities lack funds needed to adopt new systems; and, there are inadequate extension systems to disseminate knowledge on the new techniques. To ensure integrated natural resource management, it will be necessary to develop socially acceptable and easily adopted techniques to address the issues of high illiteracy rates and limited financial resources of the rural communities. Priority would need to be given to the revival and adaptation of older systems of rational, rotational grazing and land management that involve all stakeholders in planning and monitoring resource changes and in the watershed-based management systems as opposed to management of individual resources. Box 1. Integrating Forestry Development Into The Broader Natural Resources Management Agenda The Eastern Anatolia Watershed Rehabilitation in Turkey Page 20 15 The project sought to restore sustainable land-use management to degraded watersheds in three provinces of the Upper Euphrates River Basin and increase the incomes of the local population living in these areas, which are among the poorest in Turkey. To do this it had to help restore sustainable range, forest and farming activities, reduce soil degradation, erosion and sedimentation in reservoirs. A major component of the project focused on the need for institutional and behavioral changes among communities and government. It promoted inter-sectoral agency cooperation at the provincial level (agriculture, forestry and small-scale irrigation); and the local population was involved in creating watershed rehabilitation programs. The project has strong support at both the local and national levels. After a successful beginning, the approach was extended to six more provinces in southern and southeastern Turkey and will now be adopted in up to 20 more provinces in a follow-up operation. This is just over one third of the country’s 80 provinces. The project has benefited from a high degree of local commitment (increasing local empowerment). It improved opportunity and access to resources through targeted interventions, was cost-effective and could be maintained despite a difficult macro-economic environment. A natural resources and poverty reduction project using a similar participatory approach is under preparation in Armenia, and the follow-up project under preparation for the Turkish Black Sea and Mediterranean region will also support nutrient reduction programs. The Anatolia project has demonstrated feasibility of combining improved natural resource management, agricultural development, including livestock with improved socio-economic development of the participating local communities all under a watershed development window. Tunisia : Northwest Mountainous and Forestry Areas Development Project. The project aims to improve the socio-economic conditions of the beneficiaries, and hence contribute to poverty alleviation, while protecting and improving natural resources management. To achieve this objective, the project emphasizes a rural development approach that is highly participative including the participation of various other agencies involved in socio- economic development of the populations in the zone. The specific issues to be addressed by the project include: (a) the low agricultural productivity and over-exploitation of the natural resources (including forests) that remain the main obstacles to the improvement of agricultural production; (i) developing and promoting the adoption of improved agricultural technologies/practices suitable to the existing agro-ecological conditions; and (ii) carrying out the necessary soil/water conservation works and promoting better environmental policies/practices; improve access by the local communities to the forest resources, in order to increase the household revenues, as well as identify other acceptable alternative income-generating activities; (b) contribute to the Government's strategy of promoting sustainable forest resources management through increased participatory forest management; and (c) help the local communities participate in the bidding for (and carrying out of) forest management contracts, through improved bidding procedures as well as the provision of small equipment and technical assistance. Morocco : Integrated Forestry Development Project (under preparation) The overall program goal is sustainable economic and social development in poor rural areas, while improving the management of biodiversity and natural resources through the following five more specific objectives: (a) sustainable management of forestry, water and soil resources and improvement of agricultural production in peri-forestry areas; (b) improved socio- economic conditions of the rural population; (c) protection of the country's biodiversity; (d) increased industrial and artisanal wood production; and (e) increased forest based services for use and enjoyment by the urban and rural populations. In addition, through its various activities to improve the forest's environmental services (increased vegetative cover and better forest management), the project will contribute to reducing net emissions of greenhouse gases by improving carbon storage. If successful, the project offers another successful example of integrated natural resources management where the issues of forestry, community needs, agriculture, biodiversity and other considerations are brought together to address issues of sustainable use and management of scarce resources. 52. Institutional. These constraints could be sub-divided into four main areas: ¾ Political . Decision makers tend to underestimate the socio-economic and environmental importance of the forests, partly because of their relatively small size but also due to the difficulty of demonstrating their importance. This often results in a lack of government-backed operational strategies at the national level; Page 21 16 ¾ Legislative . Forest laws and regulations are often incomplete and unenforceable 34 . Concerning the non-wood forest products, there is insufficient legislation in most countries concerning the harvesting and trade of medicinal, edible and aromatic plants. In addition, national livestock policies have tended to aggravate problems of overstocking, and therefore overgrazing, through the encouragement and importation of cheap feed grains and the lack of regulation of numbers. Technological advances in the transport of livestock and water and the role of private capital have continued to place exceptional stress on natural rangeland resources. The lack of regulation has undermined the strength of older institutions and the system of communal range management which were designed to manage resources in a sustainable manner. ¾ Informational . Inadequate reliable comprehensive and up-to-date information on forest resources and products, particularly concerning their potential in environmental terms; and ¾ Partnership . Limited involvement of the local communities and private sector, in the preparation and execution of the forest strategies and management plans. In addition, other government agencies that are involved in rural development in general do not collaborate even when they are working with the same populations. The lack of institutional capacity on the part of the possible partners also limits collaboration 35 . New policies and interventions are also required to encourage better partnerships between public and private sector stakeholders in management of scarce resources. Policies are needed to promote greater access to information concerning new technologies in natural resource management; and improved access to credit for production and for the development of alternative livelihoods that would result in lower pressure of natural resource use; 53. Financial. Practically all public forestry administrations have difficulty in adequately financing their operations. For instance, in the case of Morocco where the forest area is over 8 million ha, the public funds for investments and recurrent expenditures in forestry represent approximately 10 percent (less than US$35 million per year) of the total budget of the Ministère chargé des Eaux et Forêts . Generally speaking, the forestry administrations are staffed with capable engineers and technicians, albeit often in insufficient numbers. However, most administrations suffer from a lack of professional qualified staff in social, financial and economic matters, with the consequence that participatory planning as well as the cost-effectiveness and levels of economic returns of the forestry operations are concepts often neglected. Moreover, in most countries, advanced training of the forestry staff is limited. This shortcoming has had a negative impact not only on the implementation of forestry operations but also on staff capacity to adopt new technologies and approaches to their work. Limited financing also results in poor sylvicultural treatments, harvesting techniques and delays in implementing forest management plans. This problem is also apparent for wood processing industries, which tend to rely on old inefficient harvesting equipment. Addressing the constraints 54. All the facts presented previously indicate that the fragile forest resources in the MNA Region are under threat, partly due to their over-exploitation in the past and to the prevailing adverse climatic conditions, but also because of the growing population/livestock pressures and the lack of public funds for forestry development. It is also becoming clear that the existing policy, institutional and legislative framework are inadequate to deal with the evolving and increasing needs of the populations for forest goods and services. The main challenge for the countries is to reconcile the various demands made on the forests with the environmental imperatives. 34 One general problem is the lack of clarity/protection for the users’ rights in and around the forests. Also, the laws very seldom deal with the management of private forest areas and grazing lands. 35 For instance, local NGOs lack capacity, are under funded and overly reliant on the governments. Page 22 17 55. These constraints must be dealt with in an integrated manner because they are inter-related. Moreover, forestry cannot be considered as a stand-alone sector but rather as a key element of natural resource management within a broader landscape approach to sustainable rural development. To achieve this, forestry development must be seen in the broader context of sustainable natural resource management 36 and also through its potential contribution to poverty alleviation in rural areas 37 . Furthermore, there is an increasing realization of the inter-sectoral linkages between forestry and water supply and livestock and crop production. More generally, forestry development is also influenced by demographic factors (e.g., population growth/composition 38 [age pyramid 39 ], migrations and other population movements, rural and urban mix) and economic considerations (e.g., growth in general and for agriculture in particular 40 , availability of public funds and consumers demand for wood and non-wood forest products). 56. The inter-sectoral linkage with water is important and there is a need to look at the role of forests in regulating water flows, reducing soil erosion, as well as other environmental services. Given the aridity, irrigation becomes a critical factor in plantation establishment. Plantations have to compete with the growing urban demand for domestic and industrial water supplies, and with the steady needs for agricultural production 41 . In addition, irrigation development will also necessitate better management of watersheds and catchment areas. Forestry has a dominant role to play although land-use issues are also important 42 . Furthermore, policies and incentives designed to increase agricultural production are at times in conflict with those designed to increase forest cover and environmental protection services, an example being cereal subsidies which encourage deforestation, even in marginal areas where production would be minimal. 57. Another important inter-sectoral linkage is with livestock. Conflicts between settled cultivation and semi-nomadic grazing have increased the pressure on remaining forests. Traditional organized forest grazing, with low livestock numbers on agreed rotations, is now breaking down. For instance; the Maghreb countries, despite their recent social and economic development, still have large rural populations that graze livestock in the forests. A substantial part of the pastures are found in the forests, which has led in certain places to severe degradation. A final example of inter-sectoral linkage is with crop production. Not only do the crops and trees compete for water but the legislation in force and/or the subsidies on farm inputs in several countries, is encouraging the conversion of forests and rangelands into croplands. 58. Although many countries have a forestry policy or alternatively an (official) overall position document on forestry, only Morocco and Tunisia have national strategies which at least in the case of Tunisia, would still need to be further detailed for operational purposes. A fully-fledged forestry strategy should: (a) integrate the forests and woodlands into sustainable natural resources and economic development; (b) seek to maximize the environmental benefits of the forests; and (c) harness the potential of the forests to alleviate poverty. 36 Including mixed woodlands, shrub-lands, plantations along watersheds, esparto grass and other permanent pastures, and rangelands be included with forestry development. 37 The higher the level of poverty, the higher the level of dependence on natural resources like forests 38 The overall population density can be low but the density in relation to the arable land is very high. Fore example, more than 2,000 persons/km² in the Nile Valley/Delta of Egypt and more than 300 in the Maghreb . 39 For instance, a substantial proportion of the population is below the age of 15. As they become adults, they will create new demands, particularly for water and construction materials. 40 Livestock and crop production compete with forestry for space, water and public funds . 41 Pioneering work on using treated sewage water for plantations has been carried out in countries like Egypt, Oman and Qatar. 42 There is a need for a legal framework and incentives allowing more security of tenure and even compensation for refraining from certain land uses that create serious downstream damages. Page 23 18 59. To achieve this, forestry planning needs to be an integral part of land use and also national development planning 4 3 . Conversely, national development objectives must be converted into forestry objectives that are clear, realistic and measurable. Second, maximizing the environmental benefits of forests will necessitate a deeper understanding of their potential so as to prioritize/formulate better the necessary investments. Third, to alleviate poverty, forestry development must be aimed at: (a) improving the supply of fuelwood and fodder, which is critical to rural households; (b) increasing the productivity of other land uses, particularly for subsistence cropping and small livestock; and (c) enhancing employment/income opportunities in the forests for the populations living in and around forested areas. 60. In the context of a natural resource management approach, a national forestry strategy should be multi-faceted and involve a correct mix of policy actions, institutional restructuring, legislative revisions and perhaps the provision of specific incentives. As already indicated, due consideration should be given to the inter-sectoral linkages, particularly with water supply and livestock and crop production 4 4 . Furthermore, the strategy – as well as the national forestry (action) program derived from it, will only work if implemented over a relatively long period of time. This cannot be the responsibility/role of the Governments but also of the other stakeholders such as the civil society and local communities who make up the ultimate beneficiaries. Institutional and financial mechanisms should therefore be set up for the purpose of involving the stakeholders in the formulation as well as implementation of the strategies and programs, for example, systematic use of participatory approaches, forestry development funds and various incentives, including taxes. 61. To the extent possible, governments should formally transfer, as much as possible, user rights to local authorities. This would give the local communities a stake in the benefits that the forests can generate and therefore ensure their sustainability. However, the process of this type of transfer will often necessitate some revisions in the forest laws and codes and regulations of the countries. Furthermore, the limited institutional capacity of the stakeholders and local authorities is a constraint that would need to be addressed. For instance, given the crucial environmental roles of the forests, it is imperative to demonstrate that the local communities have adequate capacity to use the forest resources in a sustainable manner and thus reduce the incidence of deforestation and over-exploitation of the resources. 62. The starting point in formulating a national strategy should be to collect up-to-date and reliable information on the potentials of the forests, particularly in terms of its environmental functions but also on other matters such as wood processing [financial viability of the industries] and non-wood forest products [possible markets]. This would help in mobilizing more political support for forestry development but also more fundamentally, in establishing an order of priorities for the fields of intervention and the investments to be undertaken. As a general rule, applied quick-yielding research followed by pilot operations should be carried out when there are no proven solutions to specific problems. Once successful, pilot operations can subsequently be replicated on a larger scale. On the other hand, well-targeted short-term analytical work should be carried out where the problems are still unclear and need further investigation. 63. Although each country would most likely develop and implement specific national programs, there are common characteristics. One of the first steps should probably be to reconcile potentially conflicting sectoral policies, particularly in terms of incentives. For instance, crop production should not be supported at the expense of forestry and policies, fiscal and non-fiscal incentives that encourage the conversion of forest areas into agricultural lands must be reviewed. Similarly, wood imports should not be encouraged at the expense of domestic production by, for example, applying a taxation regime more 43 Although, even where there is some form of land-use planning, the necessary political support and institutional mechanisms do not always exist. 44 In fact, a complete forestry strategy should – depending on the circumstances – cover many different fields such as agriculture, land-use, wildlife, rural development, the environment and trade/marketing. Page 24 19 favorable to imports. More generally, the public funds available for the forestry sector must be sufficient to meet the forestry objectives set by the governments. This would most likely mean compromises in terms of public finance, i.e., overall budgetary constraints versus dedicated budgets for forestry. A final example of policy action is the need to encourage, through selective investments and various (including tax) incentives, the use of alternative sources of energy like kerosene, liquid petroleum gas and electricity, with a view to decreasing the countries’ dependence on fuelwood and reducing some of the pressures on the forests. 64. Institutional restructuring should also be one of the priorities of the national program. In some countries, there is a need to consolidate/streamline the various governmental structures involved in forestry development but more broadly perhaps, for a second step, in natural resources management 45 . There is also a need to strengthen and decentralize the structures the operational and financial responsibilities to ensure efficiency. Proper funding and staffing must also be provided for the administrations to operate efficiently. 65. Another priority should be the redefinition of the role of the private sector in forestry. Governments should gradually transfer the responsibility for carrying out all productive and commercial activities to private entrepreneurs. As discussed in paragraphs 27 and 36, the current involvement of entrepreneurs in forestry operations is limited, mainly due to the rigid views of legal and regulatory constraints. On the other hand, most of the wood processing is in the hands of entrepreneurs as in the case of Egypt and Morocco. In general, there is a need to promote the involvement of the private sector in forestry development through specific support programs. These could include improving management capacity, soft credits and perhaps tax rebates. It would also be necessary to revise some of the forest laws and codes and regulations. 66. Regeneration and reforestation programs, as well as the establishment of well-managed plantations, could, for the time being, continue to be carried out under government responsibility, given the long growth periods, low incentives presently available for the private entrepreneur, and additional studies necessary for the regeneration problems. Reforestation must be aimed at efficiently addressing the acute environmental problems in each country 46 . Very often, these problems include upland deforestation followed by soil erosion causing downstream siltation in water courses and losses of agricultural lands. Consequently, better watershed management becomes a priority as is the case in Iran and Morocco 47 . 67. Forest areas in the region have increased largely due to an expansion of plantation areas. Well- managed plantations could have environmental benefits and could also produce domestic roundwood of sufficient quality to replace some imports, if found financially viable. Given the scarcity of water in the areas where forestry is expanding, irrigation will be necessary and the cost of water as well as land could increase with the result that irrigated plantations could become prohibitively expensive. To maximize efficient use of scarce water resources the Governments should encourage: (a) better matching of ecosystems; (b) a wider application of cost-saving techniques like drip irrigation; and (c) the use of treated sewage water when possible. 68. There are new forest management technologies relevant to low forest cover countries, but many remain underutilized and/or inadequately shared. For example: (a) remote sensing and geographical information systems for the assessment of forest areas and for the extent and/or condition of forest cover; 45 For example, in Syria, where the reforestation/afforestation programs are closely coordinated with range development. 46 Efficiency includes reforesting with the best suited species and providing adequate maintenance. 47 Morocco’s large-scale watershed management programs are strategically important for the country’s agricultural production and hydroelectric power generation. Page 25 20 and (b) early warning systems for specific threats such as fire. Many countries do not have adequate technical and financial resources to set up and operate these systems. Concerning forestry research, more effort should be placed on economic and environmental issues rather than purely technical matters. For instance, there are proven techniques available for reseeding, soil preparation for afforestation and sand dune stabilization, but they tend to be expensive and more research is needed to develop more affordable techniques. Inadequate numbers of sufficiently trained researchers is also a major constraint in many countries 48 . In order to save on costs and benefit from economies of scale, there is a need to identify issues that can be tackled at the sub-regional level. Issues of soil erosion, including the upstream/downstream impacts, developing a framework for natural resources management and other related issues could be dealt with on a regional scale. 69. As previously discussed, there is probably some room for substituting wood imports with domestic production which other things being equal, including quality, could be cheaper and generate more economic benefits at the country level in terms of jobs and revenues and foreign exchange. The main potential is probably for poles and other construction materials, and for furniture since it is bulky and costly to import 49 . The first-level constraint to promoting import substitution has been the lack of information on the financial viability of the domestic industries and on the extent/composition of the solvent demand. 70. In the case of non-wood forest products, there is a need to process the raw material as much as possible in-country before exporting, thus maximizing the value added as well as generating more jobs and revenues. As a general rule, small-scale skill-intensive enterprises should be encouraged as opposed to large-scale capital-intensive schemes. The Maghreb has a significant potential for cork production, while Morocco, Egypt and Lebanon have the added potential for medicinal, aromatic and edible plants. Reportedly, the main constraints to the processing and exportation of non-wood forest products are the lack of investments in processing technologies and equipment and the limited information available on the overseas markets (mainly demand, trends and requirements). The fact that the non-wood forest products come almost entirely from Government-owned forests probably explains, in part, the difficulty of suppliers responding efficiently to demand. III. Next Steps 71. A logical continuation to this short informal work and the Implementation Review of the MNA Forestry Portfolio would be to prepare an encompassing Regional Natural Resource Management Framework, exploring linkages between forestry, land and natural resource management in the broader rural development context. The Framework could include at least two case studies: the first in a higher forest cover country with a relatively good potential for wood and non-wood production, and the second in a low forest cover country where natural resource management for environmental benefits and related services are the overriding concerns, including soil erosion control, livestock production, non-wood forest products. The case studies would also support the development of different scenarios to sustainable management. The Framework would highlight similarities in the different countries for activities that can be addressed at the inter-regional level as well as build solutions that are country specific. The Framework would also distinguish between countries where sector/policy work could be initiated in the near future, preferably backed up by programmed investments to make the Bank’s intervention more effective, as well as those countries where any sector work and/or project investments could be kept for a later stage. The MNA Framework would also include a realistic assessment of the levels of readiness and willingness in each country for undertaking sector and policy work in forestry. 48 Sometimes, because the scientists in place have often been educated abroad, they tend to know more about forestry in developed countries than in their own. 49 The largest importers of sawnwood are Egypt, Algeria, Saudi Arabia and Morocco. Furniture making is important in Egypt, Morocco and Tunisia. Page 26 21 72. Apart from analyzing the linkages between forestry, land and natural resource management, the Framework would also address the following: (a) the benefits in terms of sustainable livelihoods, reduction in vulnerability of rural populations and poverty alleviation, with special attention to gender inclusion; (b) linkages to water supply and use and the broad policy and legal aspects of the sectors; (c) the impact of forestry and natural resource management development on economic growth, in particular on urban/peri-urban development; (d) the impact of livestock on natural resources; (e) the environmental benefits to be derived from forestry/natural resources management development, including the case of carbon sequestration; (f) the benefits to the economy from good forestry/natural resource management and/or the potential losses from lack of adequate management; (g) the opportunities for private sector involvement and its financing; and (h) the use of innovative financing mechanisms, including the use of GEF, trust funds and carbon sequestration funds. 73. Following the preparation of the forest and natural resource management framework, the next step would be to develop country specific strategies where necessary, followed by operational programs. Where the framework is detailed, operational programs could spin-off directly. Page 27 Annex 1 19 Annex 1 Land Ownership and Integrated Forestry Development : The Case of Morocco And Tunisia 1. This section discusses the potential and impact of land ownership on integrated forestry development, using Morocco and Tunisia as examples. The question of land reform however is a more complex one and cannot be adequately addressed in a document such as this. Instead, the information is meant to be illustrative as well as suggest potential areas for future study in the context of land ownership. An appropriate land reform study could only take place in the context of a sound and clearly stated national land planning program, with the active support of the respective governments over an extended period of time. 2. Land issues become more pressing as population, land scarcity and dependence on forestry resources increase, which in turn result in constant conflicts between the responsible administrations trying to conserve the scarce resources and local communities aiming to increase agricultural development. Estimates show that since 1961 50 , cultivated land has expanded by 14 percent, while cropping intensity has increased by over 15 percent within the same period, indicating that most cultivable land is already being exploited and that there is limited scope for further expansion. However, cultivated land is estimated to continue to increase during 2000-2030 to reach a figure of 82 percent of the total potential. Because the newly cultivated land will often be seriously constrained by climate, slope or poor soils, access to land will become increasingly difficult over the coming years - particularly for poorer people - and the expected increase in the cultivation of marginal, forest and other fragile lands will lead to further and significant environmental degradation. 3. Table 4 below presents statistics on land area, rural populations and average annual growth rates in the two countries. Table 4. Land Area And Rural Population Numbers In Tunisia And Morocco Country Land Area Population 2000 Total 1998 000 ha Total millions Density Pers/km2 Average annual growth 1994-2000 Rural population % Morocco 44,630 28.70 64 1.7 44 Tunisia 16,362 9.60 59 1.4 34 Total 60,992 38 Source: World Bank Country data 4. Land ownership. In both countries, the land tenure systems are based on Islamic property principles which dist inguish between “ownership of resource ( Mulk al Ayni )” and “ownership of use ( Mulk al Manfaa )”. Formal ownership rights with no titles are different in each country. In Morocco, there is the moulka and the inheritance practices ( régime successoral ). The moulka is a customary title delivered by rural registrars called adouls . It has practically no legal value and is open to abuses. The inheritance practices normally grant co-ownership to all heirs in order to keep the lands in the family. This, however, results in excessive co-ownership 51 . In Tunisia, land ownership can be obtained through notary deeds ( actes notariés ) or ownership certificates ( certificats de possession ). The deeds do not normally specify the territorial boundaries of the lands and are therefore of limited legal value. The certificates consist of administrative documents delivered by the Governors to farmers after 5 years of appropriate use of the same lands. These documents are issued after proper 50 Farming Systems and Poverty (FAO, 2002). 51 The Government attempted in 1999 to modify the inheritance practices in the irrigated perimeters, but without great success because of open resistance from the populations. Page 28 Annex 1 20 publicity and delays for opposition 52 . They give access to formal credit and can be used as proof of ownership for titling at a later stage. Box 2 below illustrates the land ownership categories used in Morocco and Tunisia. Box 2. Categories of land ownership 53 Ownership rights can be divided into those which are formally recognized with registration/titles and those which are not titles. In both countries, a serious problem is the fact that land titles are often not kept up-to-date, sometimes for generations. Some 30 percent of the titles in Morocco were outdated according to a 2000 estimate. The percentage would reportedly be close to 50 percent in Tunisia for the same period. The main reasons given by the authorities and the landowners for not updating the titles are that: a) it is not mandatory; b) registration/titling is a lengthy and costly process; and iii) farmers prefer to rely on customary practices to informally divide their inherited lands, probably because they do not see the added advantage of the formal registration due to inadequate information but also, perhaps, because they do not necessarily agree with some of the official regulations concerning, minimum farm sizes. Complete ownership rights . These rights (ownerships of resource and use combined) confer to the holder the full possibility of using and disposing of the land, as long as no one else is negatively affected. This latter caveat is to prevent negative externalities resulting from arbitrary decisions such as blocking the road to a neighboring farm or erecting a small dam on a common watercourse. Under this category of rights, there are individual private rights and (collective) private tribal rights: for those having the individual (or family) private rights the holder can use, mortgage, rent, sell and/or donate the land at will. Such rights are considered to provide greater incentives for investments and to enhance the collateral value of the land 54 ; and for land under collective tribal lands ( terres collectives ) which are strategically important because they include both croplands and rangelands 55 , all the members of the tribe even those returning from abroad or retirees from Government and private jobs, have rights of access and use according to the tribe’s rules. Incomplete ownership rights . These include all forms of ownership which give only partial rights to the holder, either in terms of ownership or of use of the resource. There are three broad sub-categories of incomplete ownership: when a landowner having ownership of resource grants temporary or perpetuity rights of use to family members or individuals (private habous ) or to religious or public institutions (public habous ) 56 ; when state or tribal lands are granted to beneficiaries who can then use the land and rent or sell the rights of use 57 . However, they cannot use the land for purposes other than agreed, eg., shift from farming to housing 58 ; and when lands are contracted through rental or sharecropping contracts or appropriated through time by tribal members on the tribe’s land ( de facto customary rights of use 59 ). 5. Whereas privatization of land has been beneficial in some areas and the land has become better utilized and managed, in other areas privatization has restricted the movement and use of previous communally owned grazing areas. The reduced mobility of the herds has increased pressure on nearby natural resources, particularly in the summer months when forests are used to supplement grazing. In Morocco, the tribes still have the possibility of titling their lands in the name of their tribes, which provides tenure security and incentives for managing the rangelands. In Tunisia, the 52 Some 27,000 ownership certificates had been issued by Year 2000. 53 Not including state owned land 54 The only possible constraint for the holder is the lack of access to formal credit if his/her land title is not up to date. 55 Although they are often located in semi-arid and arid areas and therefore of limited productive values. 56 In the case of private habous granted to perpetuity, landowners or descendants cannot reassert their complete ownership rights until the extinction of the beneficiaries’ progeny. 57 The state lands could originate from previous land nationalization programs or repurchases from foreign owners through bilateral country conventions. 58 Another constraint is that the beneficiaries cannot use the lands as collateral for formal credit unless endorsed by the tribe. 59 These de facto rights are a major source of dispute and of great concern to the Governments. Page 29 Annex 1 21 Government introduced new institutional instruments for managing the rangelands such as setting up of private, cooperative and co-managed ranges. This creates a situation of restricted mobility which has had an impact on the once traditional sustainable management practices which were based on intra- and inter-regional mobility and access-options to additional grazing with neighboring and other tribes at different periods of the year or during droughts. 6. Experience shows that privatization of land must be accompanied by appropriate capacity building measures and credit to encourage improvements. Lessons learnt show that the type of land ownership has a profound effect on the level of access by the land holders to credit, which in turn affects the degree to which land can be improved, as well as generating sufficient income. Poor or inadequate land improvements tend to leave the land vulnerable to environmental degradation. Various studies have shown the positive correlation between education levels, land sizes and solvent demand for credit. However, given that a significant part of the farmers are illiterate or have only Koranic training, it is unlikely that these farmers will be involved in land transactions beyond seasonal renting, sharecropping and informal credit. As such, although the Governments may create opportunities, unless the rural populations are adequately informed and sufficiently educated to take advantage of them, little will come out of the progressive policies. The success of any land tenure reform depends on the extent to which it takes into account the socio-economic conditions of the stakeholders as well as their cultural values. Agricultural extension services, and perhaps other alternative means of sensitizing and training stakeholders, have an important role to play. 7. Over the years, the Tunisian Government has actively encouraged the privatization and titling of collective lands, which explains the high individual private rights applying to at least 90 percent of the lands as opposed to 76 percent in Morocco. Tunisia has carried out land tenure improvements on a total of 8.1 million ha of land since the 1960s. In Morocco, the appropriation of tribal collective pastures has increased its land area from around 7 million ha in 1970 to 8.7 million ha in 1996. At least 18 percent of land remains under tribal rights. Table 5 below shows the relative importance of the different categories of ownership by country. Similar proportions (approximately 94 percent of all arable lands) are under complete ownership in both countries 60 . Table 5. Land Ownership Statistics In Morocco And Tunisia 61 Morocco (1996) Tunisia (2001) (in millions of ha) Complete ownership 8.1 (94%) 7.6 (94%) - individual private rights 6.6 (76%) 7.3 (90%) - collective tribal rights 1.5 (18%) 0.3 (4%) Incomplete ownership 0.6 (6%) 0.5 (6%) Total 8.7 (100%) 8.1 (100%) Source : International Food Policy Research Institute 8. Land Fragmentation. Land fragmentation and significant co-ownership is prevalent in both countries. In Tunisia, the average farm size declined from 16 ha in 1962 to 11 ha in 1995 and it is projected to reduce to 7 ha by 2015. Farms of less than 5 ha accounted for 41 percent of the total number in 1962, 53 percent in 1995 and the projection is 68 percent 2015. In the case of Morocco, the data available suggests that the average farm size has remained constant since 1996 at about 6 ha 62 . However, it is estimated that the farms are generally constituted of more than 6 plots ( parcelles ) 60 Although, as indicated in the source, the Tunisian figures are more recent (2001) than the Moroccan (1996). 61 Excluding state-owned land. 62 Although it had increased before 1996 because of the appropriation of tribal collective pastures. Page 30 Annex 1 22 of less than 1 ha each. Land fragmentation limits the financial and economic viability of investments. Furthermore, excessive co-ownership hampers the decision-making process concerning investments and the use of land in general. Almost all collective lands and half the private lands in Morocco are reportedly co-owned. As already indicated, the inheritance practices constitute the main source of co- ownership. In general, land is inequitably distributed. Box 3 below illustrates the land fragmentation situation in Tunisia and Morocco. Box 3. Inequitable Land Distribution And Fragmentation Inequitable land distribution means that many rural people are landless, with again, a high dependency on natural resources, including forestry resources to make a living. In the northwest region of Tunisia where most of the forestry resources are situated, it was found that the unemployed youth, landless and women made up at least 25 to 30 percent of the households. The inference on the pressure on natural resources and forestry is easily imaginable. In Morocco, the 1996 Agricultural Census showed that small scale farmers with less than 5 ha accounted for 70 percent of the farms but controlled only 24 percent of the arable lands. Moreover, a survey carried out in 2000 pointed out that the number of “large scale” farmers increased by 26 percent since 1973. In the case of Tunisia, small scale farmers with less than 5 ha in 1995 accounted for 53 percent but they controlled only 9 percent of the arable lands. Both the Moroccan and the Tunisian Governments are aware of these inequalities and are trying to address them in the context of their strategies. 9. Inactive Land Markets. Land markets are inactive and yearly sales are negligible, particularly in Morocco. Most lands are directly exploited [close to 90 percent in Morocco] and the remaining are either rented, loaned to family or close friends or they are under sharecropping. Co-ownership makes selling land difficult; co-owners can refuse to sell for many reasons, sometimes simply to stay part of a family or community, even in situations where the land is under improved and yielding meager outputs, and hence revenues. Migration of young people to the cities means that the will to change the system of land allocation and inheritance is weakened. The absence of land markets does not help the situation concerning excessive co-ownership and land fragmentation. It also prevents the emergence of financially sustainable land tenure institutions which would need tax revenues from land sales, registration and titling to cover their operations. However, the numerous legal/bureaucratic controls deter landowners. 10. Gender. There is a genuine concern that despite their high contribution to agricultural activities, women are neglected in land tenure systems. In Tunisia, tribal lands were titled mostly on the basis of previous land holdings and women were granted very little. In Morocco, a woman has access to collective tenure rights only if she has a child. In both countries, women have the right to inherit half of a man’s share for owned lands but they usually relinquish this right to their brothers. The Moroccan 1996 Census shows that women were operating less than 5 percent of the farms. 11. Government Policies and Strategies. In short, Morocco and Tunisia have a dual land tenure system: an official type sub-system based on titling and a more customary type sub-system based on traditional rules. Both Governments are trying to reconcile the two sub-systems, essentially by: (a) actively promoting land titling, which would grant owners better access to credit and improve the marketability of their land; and (b) reforming incomplete ownership rights with a view to providing greater security of tenure, and better access to credit. The Moroccan Government encourages titling in rural areas by subsidizing the registration/titling costs to landowners 63 , whereas the Tunisian Government made titling obligatory and free until 2000 when titling fees were then set, albeit at highly subsidized levels 64 . In addition, various laws and decrees were enacted in both countries to 63 The titling fees are 25 Dirhams ($2.3)/ha for areas of 5 ha or below, and 50 Dirhams ($4.7)/ha for greater areas. 64 The fee to the landowner for titling is 10 Dinars ($7) compared to an estimated cost of 80 Dinars ($57). Page 31 Annex 1 23 redefine incomplete ownership rights on croplands and rangelands for the purpose of broadening and formalizing these rights. Actual Government policies on land ownership and their potential impact on forestry development and natural resource management need to be reviewed to induce appropriate planning and implementation. 12. As previously discussed, both the Moroccan and the Tunisian Governments have taken different approaches to reforming collective tribal lands. In Tunisia, the strategy has been to promote the individualization and titling of collective lands. On the contrary, the focus in Morocco has been to maintain tribal lands while strengthening the individual rights of tribal members, mainly through the granting of perpetual user rights. The lands, however, continue to be the property of the tribe and this situation often creates confusion and disputes. There is also the fact that cropping on these lands is expanding, frequently at the expense of rangelands which hampers livestock development. The Moroccan Government is very much aware of these problems and has begun consulting with the tribes for the purpose of managing a peaceful evolution of tribal members’ rights of use towards private rights. 13. Concerning habou lands, both Governments have sought to reform them, essentially by: (a) enabling owners’ heirs (in the case of private habous ) to regain control over the lands; and (b) classifying public habous as state lands. In parallel, various measures have been taken to allocate state lands to former tenants (or their descendants), “landless”, land-short farmers and even agricultural technicians. Again, in both countries, there are measures in place to prevent land fragmentation; for example, inherited lands in Morocco cannot normally be divided into plots of less than 5 ha. Moreover, land co-owners – under specific circumstances can receive soft loans to buy other co-owners’ shares, and therefore reduce excessive co-ownership. The real and ultimate impact of these measures on the land tenure systems have yet to be assessed. 14. Tunisia has a modernization program, Programme de Modernisation du Foncier Agricole , which was initiated in 1999 and is aimed at: (a) finalizing the individualization of tribal lands; (b) updating the outdated titles and completing the process of country-wide land registration/ titling; (c) stopping land fragmentation; (d) promoting credit mechanisms adapted to the existing (different) land tenure systems; and (e) improving consultation mechanisms with farmers. The Agence Foncière Agricole has an important role to play in carrying out this program 65 . 15. Institutions. In Tunisia and Morocco several institutions, at the national as well as local levels, are involved in the allocation of lands and management of land rights. The main institutions in each country are the Ministries of Interior, Agriculture and Justice. In the case of Morocco, there is also the Ministry of Habous and Islamic Affairs which is responsible for Habou lands. Land titling is slow as it requires the intervention of various services in the ministries aforementioned, each with its own priorities and processing timetable. Moreover, at the level of the province in Morocco and governorate in Tunisia, 3 other institutions are involved in the titling process, the Land Survey and Mapping Office, the Land Registry Office and the Real State Court. Limited coordination between institutions responsible for land issues makes changing land ownership slow and complicated. 16. A major difference between Morocco and Tunisia relates to the handling of the collective lands. In Morocco, the Ministry of Interior has the responsibility for these lands together with the Ministry of Agriculture 66 , which is in charge of all technical matters. In Tunisia, the Ministry of Agriculture is responsible for policy as well as technical matters. Furthermore, in Tunisia there is a land tenure agency, l’Agence Foncière Agricole ( AFA ), which is officially responsible for land tenure 65 FAO is helping l’ AFA strengthen its technical capacities through a $272,000 Technical Cooperative Program (TCP) finishing this year. 66 Ministère de l’agriculture, du développement rural et des eaux et forêts (MADREF). Page 32 Annex 1 24 improvements (essentially land consolidation) in the “productive” drylands as well as in the irrigated lands 6 7 . Addressing the constraints 17. Regarding constraints to forestry/ natural resource management development resulting from the complexities of land issues, the problem is compounded due to factors such as p opulatio n pressure on a relatively fixed amount of arable lands. In addition to better education and extension work in rural areas, which are long-term remedies, other solutions could be: (a) improvements in existing tenure systems, particularly through efficient titling on “productive” lands; (b) promotion of other types of formal ownership rights on less productive lands; and (c) creation of off-farm income- generating activities to reduce pressure. These solutions are necessary not only for the purpose of encouraging a more efficient allocation and use of arable lands and therefore increasing agricultural (cropping and livestock) production, but also to maintain and improve the environmental value of land by controlling land erosion and alleviating poverty. 18. There is a need to ease, streamline and render cost-effective the registration and titling process 68 . This implies that the number of institutions involved should be kept to a minimum. This, coupled with the provision of better information to the farmers should result in more requests for registrations, titles and other forms of ownership documents and for updating ownerships as well as for new ownership. Additional requests, in turn, should generate larger revenues for the entities processing the documents, including the Land Registry Office and the Real State Court, allowing them to give more efficient services. 19. Serious consideration should be given to the possibility of using other types of formal ownership rights than titling for lands that do not have a high productive value. In Morocco, only around 200,000 farms have been titled over the last 80 years, out of more than 1 million. In Tunisia, slightly less than 5 million ha have been titled between 1964 and 2001. At this pace, it will take decades to complete the work. The remaining lands are probably the most difficult, e.g., small farms with excessive co-ownership and sometimes in marginal areas. Simpler and cheaper forms of rights could be promoted, for instance, the system of certificats de possession used in Tunisia can be improved, the certificates given an even clearer and greater legal value. Similarly, the system of moulkas in Morocco could also be improved, mainly by giving a legal status and more formal responsibilities and training to the rural registrars ( adouls ). These measures would help “formalize” land ownership across the two countries and encourage a more productive use of the land. 20. Similarly, there is a need to analyze the reasons why land markets are not developing, including the numerous legal and bureaucratic controls in place. Land markets could help solve the problems of co-ownership and land fragmentation. Moreover, land sales would provide much needed revenues to the institutions involved, in addition to encouraging a more efficient allocation and use of the land. 21. Co-ownership could be reduced by devising incentives to encourage co-owners, particularly co-heirs, to sell their shares of the land. An example of such an incentive is a fund including a mix of soft credits and grants for landowners to buy co-owners’ shares and/or for co-owners to start new income- generating activities, preferably in the same areas. In Morocco, for instance the Fonds de Développement Agricole , which is managed by the Caisse Nationale de Crédit Agricole could be used for such purposes. The overall cost of funds would not be high compared to the opportunity cost in terms of potential agricultural production on these under-utilized land. Co-owners wishing to retain their shares could also be encouraged to form cooperatives in which shares become part of a 67 Its mandate to operate in irrigated lands was expanded to “productive” drylands in 1999. 68 A greater use of other types of formal ownership rights would lower the overall average cost. Page 33 Annex 1 25 collective fund operated by a single management, allowing for more efficient decision-making and use of the land. 22. Land fragmentation could also be reduced by simplifying and speeding up the various consolidation programs underway, such as those with the Agence Foncière Agricole in Tunisia. As in the case of excessive co-ownership, the overall costs of these programs would not be high compared to the opportunity costs involved. Unfortunately, in both cases, inheritance practices jeopardize the benefits and should be reformed within the limits allowed by the cultural context. 23. Land consolidation to reduce fragmentation implies a compromise between: (a) maintaining ecologically diverse plots against climatic risks; and (b) acquiring economies of scale and savings, with the consolidation of plots. This compromise is an important consideration. It will require an even more participatory approach with landowners in the low-productivity lands where the consolidation programs will have to take place once the irrigated lands and high-potential drylands are adequately covered. Land consolidation, therefore, could become a more difficult process in the future, perhaps also more time-consuming and costly. On the other hand, the inheritance practices compromise the benefits of the consolidation programs and should eventually be reformed. 24. Creating off-farm income-generating activities is a matter that goes well beyond the issue of land tenure. It necessitates an adequate mix of credit, technical assistance and appropriate livelihood options for the beneficiaries under consideration and therefore, requires the efficient interaction of financing agencies, technical institutions and information on the socio-economic status of the beneficiaries. It is also highly preferable to involve private entrepreneurs in the formulation and implementation of the assistance programs since they have significant knowledge on the commercial aspects of the sector. Above all, the main prerequisite to success is sustainable economic growth in the country, which will provide the purchasing power to the consumers and consequently the markets for the off-farm activities to be financially viable. The proposals made here should take into account that for successful land tenure reform to take place, there is need for a sound and clearly stated national land planning program to be implemented over a relatively long period of time and to allow policy changes to be made and implemented in a coherent manner. Next steps 25. Land issues were identified in the MNA Rural Development Strategy as being an area inadequately addressed by the Bank, and there are currently no ESW tasks planned over the next fiscal years to address the situation. Preliminary discussions were held with the Tunisian Government in 2001 to begin preparation of limited ESW but due to the sensitivity of the subject it was requested that the Bank not initiate the study. However, this issue still merits adequate attention and the Bank is in a good position to assist the governments improve the land tenure situation in the countries involved. In addition to an in-depth study in countries where this is lacking, the overall issue of land tenure, of which land ownership would be a part, the issue of land ownership could be advanced by looking at the following: ¾ Review of the current land tenure situations and develop priorities for addressing identified issues. ¾ Legislation. Update the legislation governing the distribution and improvement of land. Much of the existing texts, including some of those recently updated, remain inapplicable. The titling process also needs to be streamlined and made more cost-effective. ¾ Institutional. Improve coordination mechanisms between various institutions involved in land issues. This may also include the improvement of communication channels through the provision of training and capacity-building activities. Page 34 Annex 1 26 ¾ Develop alternatives to land titling. Develop appropriate and more cost-effective methods of titling. It is imperative that less costly alternatives are developed and used. Traditional systems also need to be examined to see how they could be adapted to an acceptable form that is both legal and binding, at the same time providing security for the stakeholders. However, it must be noted that legislation should not be the only means to land security. It would also be necessary to determine privatization of land, particularly land under government domain, is the only viable solution. ¾ Technical. Renewal of equipment used in the delimitation of land, as well as improvement of the geographic information systems to acquire information and knowledge of land issues. Improvement of the database will alleviate the present lack of information on land issues and it should also improve the countries’ capacity to update titles and keep them current. ¾ Development of an integrated approach to improvement of land issues. Develop an integrated approach to better management of land issues that takes into consideration issues of the broad rural economies which go beyond technical solutions. The approach must include socio- economic status of the stakeholders, the social and economic impacts of solutions proposed, the physical aspects of soil classification, potential and production, must also be addressed. Once the land has been redistributed, consolidated and/or titled, the farmer must have access to training on ways to improve the value of land and, in particularly for small scale farmers who tend to use few inputs to increase production costs for little yield. The training would also have to include environmental degradation control methods to decrease the long-term effects of soil degradation. Furthermore, incentives and alternative livelihoods need to be created for those holding on to unproductive land to improve it, sell it or loan it. ¾ Gender. Integrate women in land improvements and tenure, particularly given their active role in the rural agricultural economy. ¾ Land consolidation. Develop ways in which the successful land consolidation pilots from Tunisia could be scaled up. Admittedly, this is on a purely voluntary basis but experience shows that with adequate information, farmers are willing to address the situation. ¾ Induce land markets. The Bank could also assist the government develop land markets, including land valuation, accompanying sensitization campaigns and training for stakeholders to improve knowledge of land issues and reduce conflict. 26. In the final analysis, whatever solutions are proposed they must be implemented progressively as the issues are complex, their impact on the social and economic conditions of the beneficiaries and have a cost implication for the government, not only in financially terms but also due to the sensitivity of the issue. Marie A. F. How Yew Kin P:\!UNITS\MNSRE\IDAH\IdahMain\FORNRMESW\forestry_paper_land annex_final.doc June 4, 2003 10:52 AM