LAW COMPLIANCE, AND PREVENTION AND CONTROL OF …

LAW COMPLIANCE,

AND PREVENTION AND

CONTROL OF ILLEGAL

ACTIVITIES IN THE

FOREST SECTOR

IN SURINAME

Country AssessmentPreliminary Version

Maureen Playfair

The World BankWashington, D.C.

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© 2007 The International Bank for Reconstruction and Development/The World Bank1818 H Street, NWWashington, DC 20433Telephone: 202-473-1000Internet: www.worldbank.org/ruralE-mail: [email protected]

All rights reserved.

The findings, interpretations, and conclusions expressed herein are those of the author(s) and do notnecessarily reflect the views of the Board of Executive Directors of the World Bank or the governmentsthey represent.

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This analysis has been completed with funding provided in part by the European Union.

1. Introduction 1

2. Status Of Illegal Logging And Forest Sector Law Enforcement 5

Defining Illegal Logging 5Volume of Illegal Logging and Other Illegal Activities 6

Volume of illegally produced wood 6Estimating the volume of undetected and unrecorded illegal wood 7Consumption of non-industrial wood 8Other illegal activities 8Illegal gold mining 9

Types of Illegal Logging 9Introduction 9Forestry production by tribal peoples 10Mobile, portable mill, and chain saw wood production 10

Border and Trade Issues 11Impact on Government Finances 13Impact on Indigenous Communities, the Rural Poor, and the Environment 13

Impact of illegal logging on the tribal populations 13Conflicts due to forestland intrusion 14Impact on the environment 14

Impact on the Forest Industry 15

Table of Contentsiii

3. Forest Sector Institutional Analysis 17

Policy Framework 17Major policies related to illegal activities 17Drivers behind illegal activities in the forest sector 18Law enforcement mechanisms for controlling illegal logging 18Political will to address illegal activities and stakeholders participation 18

Legal Framework 19Legislation 19Incentives and disincentives to legalize forestry operations 19Procedures in timber sales 20Procedures for logging operations 20Shortcomings in the legal system regarding illegal forestry activities 20Institutional preconditions for improving legal compliance 21Monitoring and control system 21Agencies in forest law enforcement 21Capacity at the SBB for monitoring and control 22Monitoring and control activities in timber production. 22Monitoring of other forest production activities 23Dealing with violations 23The issue of corruption 24

4. Underlying Causes Of Illegal Activities 25

Socioeconomic Root Causes of Illegal Activities in Forestry 25The socioeconomic situation of forest producers 25The issue of good governance 25

Economic Incentives and Disincentives to Comply with Existing Laws 26Key Issues Within the Government Affecting Illegal Logging 26

5. Knowledge Management 27

National Forest Database 27Capacity for Mapping and Demarcation of Forestlands 27

Forests assessment and database information availability to the public 28

6. Forest Sector Competitiveness 29

Introduction 29Restrictions and Constraints Affecting Forest Sector Competitiveness 30

Forestry legislation 30Capacity and professionalism in the forest sector 30Land rights 30Forestry infrastructure 30

iv

LAW COMPLIANCE IN SURINAME’S FOREST SECTOR

v

TABLE OF CONTENTS

Credit and investments 30Communication and cooperation 31

Increasing Sector Competitiveness 31

7. Conclusions and Recommendations 33

Annex 1: Key Actors and Contacts for Addressing Illegal Activities 37

References 39

FiguresFigure 1. Trend in the Consumption of Saw Logs for the Domestic Market

(Cubic Meters) 8

TablesTable 1. Illegally Produced Timber Documented by the SBB (Cubic Meters) 6Table 2. Production and Destination of Roundwood from 1990–2005

(Cubic Meters) 7Table 3. Production Level of Logging Enterprises in Suriname (Cubic Meters) 10Table 4. Export Volume of Wood per Region and Country in 2005

(Cubic Meters) 12Table 5. Logging Activities 20Table 6. Monitoring and Control Activities 23

Suriname is situated on the northeast coast ofSouth America, and with a land area of just16.4 million hectares, is one of the smallest

countries on the continent. The population totals480,000, with nearly 70 percent living in the capitalcity. Paramaribo, and the surrounding district.Meanwhile, a quarter of the population lives insmaller settlements along the coast and about70,000 people from tribal maroon1 and indigenouscommunities live in relatively small- to medium-size settlements and villages in the hinterlands.

More than 90 percent of the country is coveredwith natural vegetation, 80 percent of which isforested. Vegetation types are related to the variousland zones, and the most important vegetationtypes are:

■ Various types of hydrophilic vegetation in thecoastal plain, such as mangroves along the coastsand various types of swamp forest—some ofwhich contains valuable tree species like virolasp. and possum.

■ The high and low savanna forests ■ The high dryland interior forest, which varies in

species distribution, height, and diversity

Logging in Suriname is concentrated in themore accessible northern part of the country. Overthe past few decades, the 2.5 million hectare “forest

belt” (a 40- to 100-kilometer wide strip that stretch-es from east to west) has been the most importanttimber production area. Timber extraction alsooccurs in a few swamp and savanna forest areasalong the coastal plain. In recent years, timber har-vests have expanded further to the south, into hillyand mountainous areas. Rapids along the principalrivers frustrate water transport of timber. About7,000 hectares of pine plantations and smallerexperimental broadleaf plantations complementthe natural forest, producing a small amount oftimber.

The country’s productive forest area was esti-mated to cover about 4.8 million hectares in 2005.Experts doubt that the forests in the southern partof the country will be used for commercial woodproduction any time soon because of the area’sirregular topography and lack of infrastructure(National Forest Policy 2003). However, the peoplein the hinterlands use these areas to meet their sub-sistence needs for forest products.

Unlike most South American countries,Suriname is not losing its forest cover, and no reg-ular statistics on deforestation are published. In thepast, forest clearings occurred during very specificperiods. About 405,000 hectares of forestland hasbeen converted to other uses. Of this, shifting culti-vation accounts for close to 250,000 hectares. Morerecently, the development of bauxite and goldmeaning has led to forest clearing. About 200,000hectares of forestland is reserved for future conver-

1

Introduction

CHAPTER ONE

1. Traditional black communities.

2


sion for mining, hydropower, agricultural develop-ment, and settlements.

Protected forests cover over 2 million hectares(approximately 13 percent) of the land surface.These protected areas includes nearly all mangroveforests and other unique ecosystems along thecoastal plain, with the greatest stretch of protectedforests found in the interior to the south, includingthe 1.6 million-hectare Central Suriname NatureReserve. Despite the high percentage of protectedforests, some relevant forest types are not yetincluded in nature reserves.

Under the 1987 Constitution, all forests in thecountry belong to the state, with the exception ofthose on privately owned land or covered by long-term leases. Land tenure rights for agriculture canbe granted for up to 40 years. In total, this repre-sents only about 70,000 hectares. The state grantsuser rights on public forestland for timber harvest-ing and mining, and licenses for fishing, harvestingof non-timber forest products, and conductingnature research.

Timber production has been approved on 2.3million hectares. To date, timber concessionsaccount for 1.2 million hectares, while an addition-al 70,000 hectares are assigned under incidentaltimber-cutting licenses. Timber concessions areauthorized for areas up to 150,000 hectares, and areassigned for as long as 20 years. Tribal villages inaccessible areas of the interior have rights over500,000 hectares for communal use. Prior to theapproval of the Forest Management Act (FMA), vil-lages were assigned wood-cutting licenses to man-age public forests. These areas are now classified ascommunity forests and considered part of the tim-ber production area. Villages in the far interior havenot received similar rights.

After two decades of decline, commercial log-ging is on the increase in Suriname. The registeredannual national roundwood production in 2005was about 180,000 cubic meters, up from less than110,000 cubic meters in 1995. Some 47,500 cubicmeters of roundwood comes from the communalforests. Estimates of sustainable production by var-ious authors range from 500,000 cubic meters to 1.5million cubic meters of roundwood per year. Localcompanies apply selective logging systems, with alow harvesting intensity of 8 to 12 cubic meters perhectare. For larger, foreign-owned companies, theharvesting intensity averages 15 cubic meters per

hectare. More than 100 different timber species areharvested and processed.

The data on fuelwood and charcoal productionis incomplete. No official records exist for subsis-tence use of fuelwood and charcoal by rural popu-lations. Documented fuelwood and charcoal pro-duction in urban areas varies from 2,500 cubicmeters in 2003, to 1,700 cubic meters in 2005.Fuelwood production consists almost completely ofEperua falcata (walaba) posts used for cremationpurposes.

Both the volume and value of wood exports havedropped from 1998 to the present, with the excep-tion of 2002, when a large volume of round logs(22,800 cubic meters) was exported to Cuba andChina. In 2005, about 12 percent of the total round-wood production was exported, with a value ofabout US$3 million. Roundwood makes up 50 per-cent of the volume exported. As in prior years, mostof the exported volume during 2005 (about 50 per-cent) went to Asian markets, with about one-thirdexported to Europe, and the remainder to theUnited States and other countries in the region.

There are no figures available for domestic uti-lization of timber. Imported wood products consistof wood panels, with an approximate value of US$3million, and end products such as furniture, with avalue of US$4.4 million.

Forestry contributes less than 3 percent to GNP.About 4,000 workers are employed in the loggingand timber-processing sector, with an additional500 working in forest management and research.This figure is about 5 percent of the country’s totalworkforce. About 200 individual companies orlicense holders are active in the logging sector, andthere are more than 70 sawmills in the log process-ing industry. Chain saw or mobile sawmill opera-tors process a considerable number of logs in theforest and then transport and sell the planks for fur-ther processing.

A new Forest Management Act approved in 1992outlined the parameters for sustainable and ration-al use of forest resources, taking into account theinterests of the forest dwellers, as well as nature andbiodiversity conservation. An FAO technical assis-tance project (1997–2000), with funding providedby the Netherlands, developed the implementingregulations.

The issue of illegal logging is addressed onlybriefly in the 2003 National Forest Policy, stating

3

INTRODUCTION

that illegal logging undermines the efforts for sus-tainable forest management and is harmful to bonafide companies and the national economy. One ofthe strategic goals was redressing the proliferationof illegal practices, such as illegal gold mining activ-ities, illegal timber harvesting, and theft of plantsand animals.

CITES regulations affect the export of wood andwood products from Cedrela odorata (a nativespecies) and mahogany (an introduced species).The forest authority approves certificates of origin,which allow exporters to legally export wood fromthese species.

Suriname’s rating on the TransparencyInternational Corruption Perception Index hasimproved. The country is currently ranked 82nd

with a score of 3.2. With regard to the Index ofEconomic Freedom (2006), Suriname was ranked126th, with a score of 3.6, and is categorized asmostly undemocratic. The score on the regulatorysystem is 4. The study suggests that excessive gov-ernment controls in pricing and licensing createmany opportunities for favoritism and corruption.

The Forest Service (LBB) was established by lawin 1948. The LBB had gradually lost its operationalcapacity in core areas during the 1980s, and mosttimber production went unrecorded. Its currentlegal mandate to regulate forest management comesfrom the Forest Management Act of 1992. The LBBnow has the legal responsibility for the manage-ment of all forests, including nature reserves, and

the specific goal of: “sustainable forest managementfor the benefit of the (national) community.”

The arrival of Asian timber companies in 1994raised awareness of the need to strengthen govern-mental effectiveness, particularly in regard to themanagement and supervision of the logging sector.The Foundation for Forest Management andControl (Stichting voor Bosbeheer enBostoezicht—SBB) was established in 1998 for thispurpose.

The SBB has no direct legal authority, but worksunder the mandate of the LBB. The LBB is stillengaged in nature conservation. A new authority,the Forest and Nature Management Authority; (Bosen Natuurbeheers Authoriteit Suriname—BOSNAS) is expected to be established by law andwill assume the functions of the SBB and LBB.When BOSNAS becomes operational, the manage-ment of both forestry and nature conservation willbe integrated within the same organization, provid-ing the possibility for more effective and efficientcontrol and monitoring.

Other sectoral plans financed by theNetherlands are also relevant to forestry. The Planfor the Non-Urban Environment in Surinameincludes funding for BOSNAS during its initial fouryears. The Plan for the Department of Justice willalso benefit the forest sector through the rehabilita-tion and staffing of police stations in the country,thereby ensuring their governmental presence inthe hinterlands.

DEFINING ILLEGAL LOGGING

Illegal logging is defined in the regulations of theForest Management Act of 1992 “as the harvestingof wood on state land without a proper license.”Furthermore, the harvesting of undersized trees orprotected tree species is forbidden under the FMA.

Typical illegal activities in Suriname include:

■ Harvesting of wood outside concession bound-aries

■ Harvesting of wood before the harvesting plan isapproved

■ Harvesting of wood outside the assigned cuttingcompartment

■ Felling of trees that are not designated for har-vest in the harvesting plan

■ Transporting of forest products without theappropriate log tags and transport bills

■ Inaccurate log measurements and diversion ofunderreported volumes to secondary users

■ Manipulation of logs tags and transport bills tohide the origin of roundwood and underreportthe volume harvested

■ Felling of trees on privately owned land withoutwritten permission of the owners

■ Commercial felling of trees in the communalforests without written permission of the villageauthorities

■ Felling trees in nature and forest reserves ■ Late or nonpayment of fees

■ Violation of the 150,000-hecatre limit on con-cessions via the establishment of subsidiarycompanies and control of multiple concessions

■ Fraudulent acquisition of control of concessionsgreater than 5,000 hectares through the purchaseof mobile processing equipment to satisfy theconditions of the FMA.

Not all of the standards mentioned in the forestregulations are currently feasible or applicable. Thesustainable timber production system in Surinameis evolving, and a number of regulations to ensuresustainability in the public production forest arenot mandatory for all producers. Some exceptionsinclude:

■ Lack of a quota system. Producers workingunder the prescriptions of a harvesting plan—akey component of the concession managementplan—are not allowed to surpass the maximumallowable cut.

■ Concession bidding is allowable under the law,but has not (yet) been applied in the Surinameselogging sector.

■ Protective forests, as defined in the provisionalforest classification of the FMA, are forests onslopes and adjacent to rivers and other bodies ofwater. Logging is not permitted in these areas.However, because these areas are not delineatedon the map or on the ground, this regulation isnot enforced.

Status of Illegal Logging and Forest Sector Law Enforcement

CHAPTER TWO

5

■ Only a few orchid species receive full CITES pro-tection. Harvesting of the CITES listed treespecies (Cedrela odorata and mahogany spp) isallowed under the current regulations.

■ Logging licenses are given on an area basis.Duplicate felling licenses are not possible.

■ Girdling or poisoning trees to allow their subse-quent harvest is not an issue.

■ Harvesting of undersized or protected speciescan occur in areas designated for clear-cuttingwhen conversion to other uses has beenapproved.

■ The harvesting of poles and other amenity woodproducts from public forest may lead to theremoval of undersized trees.

■ Illegal accounting practices are only possible to alimited extent. Export credits are based on thefiscal value for timber exports. However, actualmarket value could be higher than the reportedfiscal value.

■ The Ministry of Trade and Industry licenses pro-cessing facilities. Noncompliance with regula-tions concerning environmental protection andlabor laws that come under the jurisdiction ofother ministries is common.

VOLUME OF ILLEGAL LOGGING ANDOTHER ILLEGAL ACTIVITIES

Volume of illegally produced wood

The SBB maintains some statistics on illegally pro-duced wood. Illegally produced wood includes:

1. Timber seized or assessed a fine due to infrac-tions and

2. “Tolerated” timber produced on expired con-cessions.1 It represents a substantial percentageof the timber harvested.

In addition to this documented illegally pro-duced timber, the SBB estimates that in the past fiveyears, an additional 20 percent has been producedillegally, but not detected (SBB, personal communi-cation). This figure is based on the informationderived from a survey conducted by the SBB in2004 on the installed capacity. The total installedlogging capacity is estimated at 200,000 cubicmeters of roundwood.

The sector was believed to be working at close tofull capacity in 2004, with registered production ofapproximately 150,000 cubic meters Based on thesefigures, the SBB estimates the additional, illegal andundocumented volume to be no more than 50,000cubic meters (+33%) . As a conservative estimate,the SBB assumes that illegal production is 20 per-cent more than what is legally produced. Illegallyproduced timber enters the market undetected andunregistered by the authorities. Table 1 reports theamounts of illegally produced timber detected bythe SBB.

6


1. Timber production on expired concessions is illegal, buttolerated by the authorities in order to avoid stagnation ofproduction. It is common for concession renewals to bedelayed excessively by the lack of effective administrativeprocedures.

TABLE 1Illegally Produced Timber Documented by the SBB (Cubic Meters)

Percentage of Seized timber Tolerated illegal and

Roundwood and/or timber timber tolerated timber Year production charged with fines production production

2000 177,000 14,200 31,000 262001 163,000 3,300 21,000 152002 154,000 3,100 23,000 172003 158,000 1,300 9,000 72004 160,000 600 24,000 152005 182,000 3,600 14,000 10

Source: Foundation for Forest management and Production Control.

Estimating the volume of undetected andunrecorded illegal wood

There is no statistical information available on theactual level of wood consumption for the domesticmarket. Illegal timber can end up on the domesticmarket or be smuggled outside the country. Thissection attempts to indirectly identify any abnormaltrends in the domestic consumption of wood by theanalysis of production and export statistics pro-duced by the SBB.

Production statistics are derived from log tags,which are filled in by timber producers and verifiedby the SBB. Export volumes are calculated at thepoint of export, where logs and other wood compo-nents are graded, and the volume precisely deter-mined. An assessment of the saw log production fordomestic consumption is made, based on produc-tion and export statistics from 1990 to 2005. Trendsare identified and exceptions noted. Imports(mainly wood-based panels and semi-finished andend products) are not included. Table 2 providesinformation on the volumes produced and theirdestinations.

The construction and furniture sectors are themain consumers of industrial roundwood in the

national market, but no figures on the actual con-sumption are available. Similarly, the Ministry ofPublic Works is unable to provide exact statistics onthe number of buildings constructed per year.About 10,000 houses have been built2 since 1980.There is no information on the volume of woodused for housing, but there is a noticeable shifttoward increased use of steel, concrete, and varioustypes of vinyl sheets and tiles.

With regard to the furniture sector, the Ministryof Trade and Industry provides licenses for theestablishment of such industries. Many small furni-ture producers work without licenses. TheChamber of Commerce currently has 106 compa-nies registered. The volume of wood used by thefurniture industry is unknown.

Both the construction and the furniture sectorspurchase wood from local timber markets locatedthroughout the urban centers. At present, 52 timbermarkets are registered with the Chamber ofCommerce. Timber is also purchased directly fromthe small producers who operate with mobilesawmills or chain saws in the forest areas. The SBB

7

STATUS OF ILLEGAL LOGGING AND FOREST SECTOR LAW ENFORCEMENT

TABLE 2Production and Destination of Roundwood from 1990–2005 (Cubic Meters)

Locally processedYear Total log production Log exports industrial roundwood

1990 114,784 0 114,7841991 105,177 0 105,1771992 118,765 1,700 117,0651993 93,122 1,200 91,9221994 96,213 6,890 89,3231995 104,668 13,000 91,6681996 202,703 24,000 178,7031997 179,228 29,000 150,2281998 141,031 21,000 120,0311999 89,930 16,000 73,9302000 171,265 9,200 162,0652001 155,135 5,600 149,5352002 145,353 22,800 122,5532003 147,053 1,130 145,9232004 153,279 4,800 148,4792005 170,391 7,200 163,191

Source: SBB annual statistics.

2. Sectoral study by the Min PLOS on Housing.

estimates that unreported production couldaccount for as much as 20 percent of the docu-mented production. On this basis, the estimate ofundocumented illegal timber is approximately34,000 cubic meters.

It is far from clear that the variations from thegeneral trend are in all cases the result of underre-porting. In 1996, the Suriname Forest Service wasnot operational and could not exercise its produc-tion monitoring duties. The lower production in1999 and 2002 might have been caused by the pooreconomic situation in the country, which limitedactivity in the construction sector. A second reasonfor the lower production in 1999 is the fact that theforest service transferred its duties in that year tothe SBB. In 2002, log exports were extraordinarilyhigh and caused a deficit in the national market.

Consumption of non-industrial wood

Production and consumption data for non-indus-trial wood is not very reliable. In 2001, the SBBdeveloped estimates of domestic consumption(Matai 2001). Production of important commercialproducts is partially monitored by the SBB. Mostproduction comes from small-scale, informal pro-ducers. Squarely hewn poles are the most signifi-cant non-industrial wood products in Suriname.Total production in 2002 was about 4,000 cubicmeters, while in 2005 this figure dropped to 600

cubic meters. Most poles are exported, and theremainder is used locally as telephone and electricalpoles. Fence posts and other poles of various typesand sizes are used in the construction, fishery andagricultural sectors. These items come from morethan 130 small producers in irregular, mostly verysmall, quantities. The total production in 2005 was2,400 cubic meters.

Small operators also produce firewood andcharcoal, but only that production destined forcommercial use is monitored. It is estimated thatthe subsistence use of fuelwood affects about 40,000people (IPCC 2002). The use of fuelwood in urbanareas is insignificant, and what is consumed isobtained from sawmill waste. In the interior, fuel-wood generally comes from land clearing and shift-ing cultivation plots. Fuelwood (mostly mangrove)from the coastal areas is used in the fishery sectorfor fish drying.

Other illegal activities

The violation of the access rights of tribal peoples isa significant problem in the forest sector. Tribalpeoples find travel limited across concessions, andto traditional sites within concessions. This is a con-straint for the security of the food supply of forest-based communities, since the gathering of non-tim-ber forest products, fishing, hunting, and evenaccess to shifting cultivation fields, is hampered.

8


FIGURE 1Trend in the Consumption of Saw Logs for the Domestic Market (Cubic Meters)

Source: SBB.

20,00040,00060,00080,000

100,000120,000140,000160,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Year

Con

sum

ptio

n in

m3

0

Violations of the Labor Act are common. Forestworkers’ rights are not respected with regard tosafety, working, and living conditions, or in regardto the number of working hours. In a scoping ses-sion for Forest Stewardship Council certification, itwas found that timber companies in Surinamescore low on social indicators for compliance withlabor regulations and tribal people’s rights (SBB,personal communication). The situation of foreignworkers employed by East Asian companies isreportedly even more unsatisfactory. Problemshave arisen concerning the issuance of working per-mits and their immigration status.

More recently, unauthorized plant collection forresearch purposes has been reported. Collection ofwild species is only permitted under license fromthe Nature Conservation Department of the ForestService. Foreign researchers and graduate studentsare said to be the principal offenders.

Illegal gold mining

Gold mining is concentrated in the Greenstone Beltof the southeastern, eastern and central parts of thecountry. Illegal and informal gold mining in theinterior of Suriname is causing the loss of forestcover and environmental damage. Informal goldmining has increased rapidly since the 1990s, whengold mining became an important source of incomefor the population in the interior. Brazilian miners(garimpeiros) with expertise in hydraulic and small-scale mining operations migrated to Suriname atthe same time.

The government has virtually no control overthese informal gold mining activities, and evenmost of the gold mining companies are workingwithout the proper licenses. In 2005, the Ministry ofLabor, Technological Development, andEnvironment reported that only 10 small-scale goldmining concessions were legally registered, whilethe World Wide Fund for Nature (WWF) estimat-ed that there were over 10,000 small-scale gold min-ers in the interior. Brazilian garimpeiros make upthe majority (65 percent), followed by and maroons(17 percent) from the interior (Healy 2005).

The miners use heavy equipment or powerfulhydraulic jets to remove the forest cover and over-burden to expose sediments where gold is found.Deforestation and soil movement cause significanterosion in the sloping landscapes of the gold mining

areas. There are no precise statistics on the totalextent of forest lost, but the EnvironmentalDepartment of the University of Surinam estimatesthat 20,000 hectares of forest have been lost throughsmall-scale gold mining (Carrilho, personal com-munication). Mercury pollution is another threatto the environment associated with gold mining.

TYPES OF ILLEGAL LOGGING

Introduction

The forest industry in Suriname consist of threemain types of companies

■ Multinationals ■ Medium-size domestic companies■ Small-scale producers

All three types may be engaged in the completechain of production, including logging, transport,processing, and local or export sales. In addition,there are a number of contractors working as inde-pendent loggers for the established companies andindependent chain saw operators. Mobile andportable mill operators may work under contract tothe larger producers with fixed sawmills in the inte-rior, or as independent operators. Both round logsand sawn timber are produced by these operators.Round logs go to the sawmill industry or to the logexporters. Sawn wood is trucked to the independ-ent wood markets, the furniture industry, and theconstruction sector.

In 2005, 70 percent the sector was made up ofsmall operators with a production of less than 2,000cubic meters. The number of larger operators in2005 represents an increase since the 1990s,although there are no really large companies pres-ent. For the small operators, including the produc-ers of minor wood products3 (94 people in 2005),there is probably little difference between povertyand commercially driven activities. Table.3 gives anindication of the structure of the sector.

Violations by small operators with productionunder 1,000 cubic meters per year and non-regis-tered (illegal) operators is often related to their

9


3. Minor wood products include small poles, shingles, stakes,and so forth.

inability to meet the administrative and technicalrequirements for sustainable timber production.Chain saw operators and operators of mobile andportable mills are part of this group. For most ofthese enterprises, neither the workers nor the man-agement have much education or understanding ofthe legal requirements of the Forest ManagementAct. More than 40 percent of these producers arethe descendants of the tribal populations in the hin-terlands. Another substantial group (20 percent) inthe timber production sector is comprised of pri-vate forestland owners (in most cases the land is incollective ownership), who permit the timber to beharvested from their forests. Illegal activities arevery much driven by poverty. Common violationsinclude:

■ Non-existent or void licenses■ Harvesting of protected species or undersized

trees in public forests■ Lack of access to required management and har-

vesting plans ■ Transport of timber or logs without tags or

other documentation ■ Harvesting outside assigned area, due to lack of

clear demarcations■ Delayed or nonpayment of forest fees and royal-

ties ■ Harvesting in protected areas

This type of logging takes place in communalforests, near tribal villages, and in privately ownedforestland.

Illegal activities at the commercial level occuramong the larger producers (multinationals and themedium-size domestic companies) with concessionoperations. Common violations include:

■ Harvesting outside assigned concession area■ Delayed payment of forest fees and royalties■ Harvesting of protected species■ Smuggling of timber across borders■ Felling unmarked trees and excessive harvesting■ Incorrect log measurement

Forestry production by tribal peoples

The illegal activities of the tribal communities in theforest sector are often poverty related. The maindriver behind the illegal activities is the lack ofemployment opportunities for people living in theinterior. These areas are less developed, and have ahigher poverty rate than coastal areas. Even whenemployed, workers from indigenous and marooncommunities usually receive the lowest-paid jobs.Low wages and high unemployment (9.4 percent)have pushed many to seek self-employment in theinformal sector. Low educational levels hinder nav-igation of the bureaucratic system and further limitthe legalization of these businesses. Many believethat they already have legal rights over the areasoccupied and used for centuries, and that it is notnecessary to formalize these rights and obtain offi-cial documents. Overall, there is a generalized lackof understanding of the legal requirements for for-est management and production.

Mobile, portable mill, and chain saw woodproduction

A number of small-scale operators process logs inthe forest and produce sawn wood. They use bothchain saws and mobile sawmills. In 2005, theyreported the production of 7,400 cubic meters ofsawn wood. Closed containers on flatbed trucksand vehicles designed for passengers are used totransport rough planks to secondary processors. Ifnot detected by the authorities, this productiongoes unrecorded.

Chain saw operators are usually residents of theforest-based communities. In the past, these com-munities practiced pit sawing, mostly for subsis-tence use. Now operators work individually or in

10


TABLE 3Production Level of Logging Enterprises inSuriname (Cubic Meters)

Roundwood production 1998 1999 2005

< 100 30 101 21101–500 51 75 21501–1,000 13 18 111,001–2,000 25 10 252,001–10,000 7 2 29> 10,000 2 1 —Total 128 207 107

Source: SBB statistics.

small family groups. In the 1990s, Guyanese opera-tors introduced techniques for onsite log process-ing, with greater productivity and better-qualitywood. The Guyanese operators are no longer visi-ble, but the techniques have remained.

Chain saw wood producers fell trees with largerdiameters and limit their selection to highly valu-able species used by the furniture manufacturers.Manual labor is used to transport the sawn timberto roads, where it is loaded for transport. Theseoperators produce good quality wood, and causeless environmental damage than mechanized log-ging operations where improper skidding causesconsiderable damage to the remaining trees. Chainsaw wood production is often seen as a temporaryactivity when other income-generation activities areabsent. The work is physically hard, productionvolumes are low, and business skills are poor, whichcontribute to poor economic returns. Chain sawoperators work less than mobile mill operators.

Because of the limited scale of chain saw woodproduction, it is not considered a major threat tothe forests. No specific policies have been formulat-ed to deal with this issue, nor are there any concisedeclarations concerning chain saw wood produc-tion in the legislation. Onsite processing of timberis allowed under all types of timber harvestinglicenses. There are even specific provisions in thefee structure for onsite timber processing. Theinformal (illegal) character of the chain saw opera-tors, as well as the mobile and portable mills opera-tors, is an issue that concerns the authorities.

Reliable information concerning the number ofmobile and portable mills operating in Suriname,and the number of chain saw operators, is lacking.The picture of mobile mills is incomplete, sincemost units operating in the remote parts of the inte-rior have not even been registered. A spokesman forthe Association for Loggers (ABE) estimates thatabout 300 mobile mills currently operate inSuriname. The SBB reported that one mobile milldealer sold about 80 sawmills last year. Other deal-ers also sell this type of equipment (Matai 2004).Some of the mobile mills are operated in fixed loca-tions, while others are repositioned as needed tosupplement stationary sawmills. With an annualproduction capacity per mobile mill of 200 cubicmeters, this sub-sector has the potential to produceat least 60,000 cubic meters of wood per year (ABE,personal information). In 2004, the SBB registered

a total of 104 processing units, of which 50 were sta-tionary sawmills.

Development NGOs are encouraging the use ofmobile mills and are providing training and fund-ing to interested communities. The job creation andincome generation associated with mobile sawmillsmake them a more profitable alternative for com-munities that otherwise might sell timber rights tooutside entrepreneurs.

BORDER AND TRADE ISSUES

Exports accounted for 30,000 cubic meters (17 per-cent) of all timber production in 2005. The mainexport item is round logs, followed by sawn timber.The largest buyer is China. Regional exports arelimited, with small quantities of sawn wood andplywood exported to French Guiana. No exports toGuyana were registered in the period of 2002–05.Table 4 provides more details on the products anddestinations of wood exports.

Suriname borders Guyana in the west, FrenchGuiana in the east and Brazil in the south. Theboundaries with Guyana and French Guiana followrivers, which are semi-navigable for wood trans-portation. The border with Brazil is mountainousand has no road access.

Only a small number of logs in eastern Surinameare felled, and they are used for subsistence purpos-es or in the gold mines. There is no movement oflogs on the river with French Guiana, but customsofficers report that Snakewood (Brosimum guianen-sis) is exported, probably for use in the craft indus-try in French Guiana.

There is a great deal of log transport along theCorantijn River between Suriname and Guyana.Important production forests are found in the areaaround the middle and upper stretches of the riverin Suriname, and to a lesser extent in Guyana. Anumber of sawmills are located along the northernCorantijn River in both countries. The area of theinterior at the Suriname border is scarcely populat-ed, with only one small population center inApoera, and two indigenous villages. Apoera housesoffices of the government administration, includinga guard post of the SBB and the police. However,they lack the proper means to patrol the river.

Transport of logs on the river is complicated.The river belongs to the territory of Suriname, but

11


the Guyanese also are free to travel along it. All logtransport on the river needs to be covered by theusual transport bill or Forest Transportation permitissued by the SBB. All timber found on the river isassumed to be of Surinamese origin, unless thetransporter can produce a harvesting permit issuedby the Guyanese forest authority. The Guyanese per-mits are countersigned by the SBB and consideredvalid for further transport on the Corantijn River.

Economic incentives and the weak presence oflaw enforcement institutions (police, customs, andforest guards) in these remote areas of the interior

facilitate illegal logging, which is done by loggersfrom both countries. The wood is harvested in theSurinamese forests and transported to sawmillsalong the riverbanks in Guyana. Logs are also trans-ported to ocean vessels for shipment overseas.

Experts say that a substantial amount of timbercrosses the river into Guyana. They believe that the17 sawmills on the Corantijn River bank couldprocess at least 50,000 cubic meters annually (SBB,personal communication). There is no informationabout timber entering Suriname from Guyana inthis area. The SBB has tried to discuss timber smug-

12


TABLE 4Export Volume of Wood per Region and Country in 2005 (Cubic Meters)

Round Squarely hewn Land logs poles Snake wood Sawn wood Total

The Caribbean area 1 425 426

Cuba 194 194Dutch Antilles 163 163St.Vincent 1 59 60Trinidad and Tobago 9 9

South America 36 36French Guiana 36 36

North & Central America 92 134 8 899 1,133United States 92 134 8 899 1,133Canada 0.02 0.02

Europe 865 2,104 21 1,163 4,153Belgium 41 90 131Germany 205 76 10 291France 28 21 49United Kingdom 20 20Netherlands 591 2,028 971 3,590Turkey 0.2 32 32.2Switzerland 40 40

Asia 6,228 54 36 2,179 8,497China 4,736 54 35 2,057 6,882Hong Kong (China) 87 87Japan 17 17United Arab Emirates 690 105 795Vietnam 715 715

Total 7,185 2,293 65 4,702 14,245

Source: SBB.

gling with Guyanese officials, but to date no follow-up actions have been taken.

IMPACT ON GOVERNMENT FINANCES

The government revenues from the forest sectorinclude an area fee of less than US$0.05 per hectare,paid for the logging rights in concessions, and a vol-ume fee of US$5 to $6 per cubic meter for commer-cially produced timber on state lands. Other fees arecharged for the purchase of log labels, waybills, andother administrative procedures. The SBB estimatesthat undetected and unrecorded timber productionrepresents an additional 20 percent of the total vol-ume of the registered production in round logs (seesection 2, “Volume of Illegal Logging and OtherIllegal Activities”). If accurate, the fees on that tim-ber would come to US$210,000.

With the established fee structure, total govern-ment revenues for 2005 should have reached US $1million for the volume cut, and a minimum of US$30,000 in area fees. The actual income in 2005 forvolume fees totaled US$800,000 and the area feeswere US$43,000.

IMPACT ON INDIGENOUS COMMUNITIES,THE RURAL POOR,AND THE ENVIRONMENT

Impact of illegal logging on the tribal populations

Land rights and forest use issues: The indigenouscommunities of Suriname belong to maroon andindigenous tribes living in the hinterland of thecountry. Land rights remain the most importantunresolved issue between them and the govern-ment. The national government has been criti-cized for not granting formal rights to the tribalgroups for the lands they occupy and have used forcenturies. In accordance with the Constitution ofthe Republic of Suriname (1987), all forests,except for those on privately owned land, belongto the state.

In 1992, after the period of social unrest andjungle war in the interior, a peace accord was nego-tiated and the national government agreed to issue

formal land rights in so-called “economic zones” tothe tribal communities. To date, no structured dia-logue has been held with the communities on theissue of land rights.

When discussing the issue of forest use and log-ging by the tribal populations, a distinction can bemade between communities living in the accessibleareas of the hinterland and those in the far interior.In the far interior, logging is done for subsistence,and regulations for the felling of trees are adminis-tered by the traditional authorities.(communityleaders. The national government does not markthe boundaries of forestland or issue use rights.Tribes and individual communities use their owntraditional land divisions.

In the more accessible part of the interior, thesituation is different. Communities received com-munal rights over forests (“houtkap vergunning,”or hkv’s) with the objective of providing opportu-nities for subsistence forest production and land foragricultural development under the 1947 TimberAct. The 1992 Forest Management Act explicitlyadds commercial logging as an appropriate use forcommunal lands.

The earlier hkv’s were issued personally to thevillage chiefs. In many cases, control of the commu-nal rights remains with the individual licensee,while the villagers get an inequitable share of thebenefits of their community forests (NationalForest Policy 2003). This is said to be more frequentin maroon societies. The indigenous organizationsclaim that they have raised awareness with their tra-ditional authorities concerning the need for com-munal forests to provide benefits for the wholecommunity, notwithstanding the fact that thelicense is issued in the name of the village chief(Vreedzaam, personal communication).

Village chiefs have been approached by privatelogging companies offering to purchase harvestingrights in the communal forest. They promise inreturn a (small) fee and other benefits for the com-munity. This situation became more prevalent inthe early 1990s, when it was more difficult for log-gers to obtain concession rights under the regula-tions of the FMA. Between 20 and 40 percent ofcommercial wood production now comes fromthese community forests. Approximately 250,000hectares of forest are logged commercially eachyear. (National Forest Policy 2003). In 2005, about

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26 percent of commercial production came fromcommunal forests.

Several communities have seen their forestsseverely degraded because of these contracts. This isa threat to their economic survival and might forcesegments of the population to migrate and live inpoorer conditions elsewhere in Suriname. In addi-tion to multinational firms, local entrepreneurs arenow using small-scale equipment (chain saws andmobile sawmills) to commercially log communalforests. These activities have contributed to the lossof authority of the village chiefs’ violation of vil-lager’s (Country Report Chainsaw milling study,2006).

The indigenous people’s generalized perceptionis that violations include any activities carried outby strangers on indigenous people’s land withoutprior government notification. Indigenous peopleshould be considered as protectors of the naturalenvironment and have the right to raise their voic-es when they are unjustly treated (Vreedzaam, per-sonal communication). The communities in the farinterior are not affected by illegal forest activitiesbecause no commercial logging is taking place intheir areas. They are, however, affected by otherillegal activities, such as gold mining.

Conflicts due to forestland intrusion

Even though the issue of land rights is still unre-solved, the government continues to grant licensesto non-tribal people and companies on forestlandsclaimed by the communities. This leads to conflictswith both the licensee and the government.

1. Community members claim that the issuing ofrights to logging companies limits their access totheir traditional forest resources and may evenlead to deforestation. People have been deniedaccess to forest roads within concessions andprevented from collecting non-timber forestproducts in traditional sites (Playfair 2006; Tjon2003).

2. Villagers complain about the fact that tradition-ally protected forest resources have been spoiledby the arrival of logging and mining companies.

3. The sense of insecurity was increased for theentire population when strangers working forN.V. MUSA Indo-Surinam appeared in the area

looking for timber4 (Vreedzaam, personal com-munication).

4. Government regulations limit road transport oflogs in the rainy season. A generalized complaintis that truckers do not obey these regulations.Road damage makes the villages inaccessible andhampers school and medical transportation. Onseveral occasions, people from tribal communi-ties erected roadblocks to stop logging trucks(Playfair 2006).

Impact on the environment

The impact of illegal logging on the environment inSuriname is greatest where sensitive protected areasare illegally logged and when high-value tree speciesare selectively harvested. Both occur with little orno consideration of species management or ecosys-tem protection.

Illegal harvesting of mangrove trees for polesand fuelwood by the fishery sector threatens the sta-bility of the mangrove ecosystem in some locations,jeopardizing coastal protection. This is especiallythe case near concentrations of fishermen in thecoastal districts.

Species important for either the handicraftindustry or the furniture sector tend to be targetedby small producers with mobile processing equip-ment. Over-harvesting may endanger the survivalof the species.

The species Cedrela odorata is a native tree foundin the coastal areas in more or less concentratedpatches, as well as in the interior. The wood is pre-ferred by handicraft producers and furniture mak-ers because of its durability and workability. Thechairperson of the handicraft producer’s organiza-tion indicated that there is a serious shortage ofcedrela. Craft producers expend great efforts to findthe wood and purchase it in small quantities fromwhomever they can. It is likely that most of this pro-duction goes unrecorded by the SBB. This type ofharvesting may eventually cause cedrela to com-pletely disappear from the coastal area.

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4. After abandoning their after long political debate toobtained concessions in the western part of the country,Musa approached the leaders of indigenous villages andasked them to supply the company with logs. They providedthe villagers with chain saws and paid them for every log ofthe desired species and dimensions delivered.

Watrakan (Cordia) is another native speciesmuch sought after by the furniture sector.Watrakan is found in low densities in heteroge-neous forests in the interior. It became popular overthe last 10 years, but now is very difficult to find inmore accessible areas.

IMPACT ON THE FOREST INDUSTRY

Preserving an adequate supply of raw material tothe established (registered) sawmills is an impor-tant issue related to illegal logging. Not all sawmillshave access to timber concessions or sufficientcapacity to meet the demand for raw material fromtheir own logging units. As a result, they purchase aconsiderable amount of timber from independentloggers. Historically, overcapacity has been a prob-lem in the sawmill industry. In 2000, a total of 74sawmills and one plywood factory were identified,with an estimated total annual log consumption ofapproximately 110,000 cubic meters. (Asraf, Matai,and Horsten 2000). By 2003, the total installedsawmilling capacity was estimated at approximately600,000 cubic meters per year. (National ForestPolicy 2003). This figure includes the existingcapacity in the mobile and portable mills. Mostsawmills are old and inefficient, although over thepast few years some new investments have beenmade. The capacity of the mobile mills is estimatedto be at least 120,000 cubic meters of round logs.This estimate is based on the information given bya spokesman of the ABE (see section 2, “Types ofIllegal Logging”).

The industry complains about the inadequatesupply of raw material. A few years ago, the blamewas placed on increased log exports because ofhigher international prices. Currently, much of theproduction by independent loggers is sawn intoboards by either the loggers or log purchasers, andcommercialized in the timber markets or sold

directly to the furniture and construction sectors,rather than to the established sawmills.

The sawmill industry in Nickerie, on the borderwith Guyana, complained regularly about the inad-equate supply of round logs. Not only were conces-sion contracts difficult to renew, but the supply oflogs was probably further reduced because of smug-gling to Guyana.

The SBB frequently makes inspection visits toregistered sawmills to verify the status of logs. Thelack of controls for secondary processors makes iteasy for illegally produced timber to enter the chainof custody.

The processing of round logs by small, independ-ent loggers in the forest, or by secondary processors,has an adverse effect on the established industry,which experiences a drop in turnover because of thedecrease in wood sales. As a result, the industry nowlacks funds for reinvestment and operational main-tenance. (ABE, personal communication)

A second issue related to illegal logging and theindustry is the price differential between illegallyand legally produced timber. Production of sawntimber in the forests tends to be more cost-effectivethan that achieved by established sawmills. Thechain of custody to the consumer is shorter. Thefees and other payments to the state are importantcosts for legal producers that others don’t pay.Informal or illegally produced sawn wood is oftentransported directly from the producer to the sec-ondary industry. Transportation costs are less, andthe overhead costs for these small businesses arealmost nil. This represents unfair competition forthe law-abiding sawmills.

There is no exact information available on pricedifferentials, but one broker indicates that the priceof sawn wood sold by sawmills is about 35 percenthigher than prices offered by mobile mill operators.The illegally produced timber also benefits thetransportation sector in the interior by providing itwith a relatively stable income opportunity.

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POLICY FRAMEWORK

Major policies related to illegal activities

The national policy for forest utilization was laiddown in the Forest Management Act of 1992. Theact outlined the parameters for the sustainable andrational use of forest resources, and includes regu-lations for forest production. From 1997–2004, anumber of policy documents on forest manage-ment and utilization were prepared in the frame-work of an FAO advisory assistance project. Noneof these documents addressed the issue of illegallogging.

In the first half of 2003, the Ministry of NaturalResources prepared the first coherent national for-est policy document for the country. The objectiveof the policy is to enhance the contribution of theforests to the national economy and the welfare ofthe current and future generations, taking intoaccount the preservation of biodiversity. The issueof illegal logging is mentioned under the thematicgoal “land-use planning.” The policy states that ille-gal logging undermines efforts toward sustainableforest management and is harmful to bona fidecompanies and the national economy (NationalForest Policy 2003). The strategic goal recommend-ed is the reduction of illegal timber harvesting andtheft of plants and animals.

The government needs to execute a number offollow-up actions to implement the forest policy.These involve:

1. The preparation a strategic action plan to pro-vide the government with details on the neces-sary actions and measures to be taken. The proj-ect document prepared for the formulation ofthe strategic action plan restates that illegal log-ging and the uncontrolled collection of plantsand animals for subsistence and commercialmarkets damage the value of the forest for theforest communities, diminish biodiversity, andare harmful to the local economy. No furthermention was made regarding these issues.

2. The 2004 framework of the DevelopmentCooperation Program of the Netherlands withSuriname includes a Policy and Action Programfor Sustainable Management of the Non UrbanEnvironment Sector (NUES). The only illegalactivities mentioned are for the fishery sector.This document does state the need to increasethe capacity for sustainable forest managementand greater efficiency in forest exploitation. As afollow-up activity, a project for establishing thenew forest management authority (BOSNAS)was prepared, and has been submitted for fund-ing by the government of the Netherlands. The

Forest Sector Institutional Analysis

CHAPTER THREE

17

project for establishing BOSNAS is also part ofthe ITTO program prepared by the Ministry ofSpatial Planning, Land, and Forest Management,which is designed to increase the contribution ofthe sector to the national economy.

Drivers behind illegal activities in the forestsector

Illegal log production is encouraged by the remote-ness of the forest area and the inadequate govern-mental presence. Concessions and other areaswhere logging has been approved are not demarcat-ed on the ground. The government does little tocontrol unauthorized access to public forests andtheir resources.

Only the larger companies take any actions tocontrol the access to their forests. The large foresttracts and access roads are usually uninhabited.Only the major settlements in the interior havepolice stations. Given the vast extent of the forestarea and the very limited capacity of the SBB, theycannot effectively monitor the full forest area (seesection 3, “Capacity at the SBB for Monitoring andControl”).

A second driver for illegal logging is the strongdemand for cheap timber from secondary proces-sors. The numerous timber markets, furniture pro-ducers, and construction companies directly pur-chase wood to satisfy the needs of their clients. Thecheaper prices in the informal sector are very attrac-tive. The weak information database on forest pro-ducers and consumers allows products made withillegally produced wood to easily enter the domesticmarket.

The policy of the government is to strengthenthe law enforcement institutions in the country, inparticular in the interior. The lack of available fund-ing negates effective implementation of the policy.

Law enforcement mechanisms forcontrolling illegal logging

The FMA provides a comprehensive regulatoryframework for control of illegal timber production.It is described in three articles of the act (articles 32,44, and 45; SB 1992, no. 80) and consists of:

1. The registration of every log harvested with aunique number and identifying characteristics.

2. Placing of numbered tags on every log harvestedthat identify specific producers and individualharvesting compartments.

3. Documentation of every log shipment, includ-ing the tag numbers and final destination.

The FMA further specifies that a license is need-ed to operate any log processing plant, and thatevery carrier of wood products or every personengaged in log processing is obliged to supply sta-tistical data to the SBB whenever requested.

Political will to address illegal activities andstakeholders participation

Despite its extensive character, forestry is not highon the political agenda. Government efforts focuson increasing the economic contribution thatrenewable resources make to the national economy,and environmental protection (ITTO preproject,2006). Although illegal logging is not regarded to bea major issue, addressing the issue could be impor-tant for the country’s image.

The growing interest of multinationals in thecountry, and the demand for logs for the Asianmarket, might stimulate an increase in illegally pro-duced timber. It is in the interest of all groups in thelogging sector, namely the established industry, thesmall producers, the tribal communities, and thestate, to deal with this issue. The SBB or BOSNASneeds to take the lead and work with the otherstakeholders to clearly define illegal logging anddraft additional legislation as needed. This processshould consider the situation of the small entrepre-neurs in the tribal communities who are earning aliving in the gray area of informal production andillegal activities.

Unresolved land rights issues also require con-sideration. At present, there are no forums for dis-cussing these issues. The framework for forest poli-cy formulation and monitoring identifies the needfor periodic consultation with stakeholders to reachconsensus regarding specific issues on the elabora-tion and implementation of the forest policy(National Forest Policy 2003). The major stake-holders in this process include: various segments ofthe forest industry, including primary and the sec-ondary processors, tribal organizations, govern-ment institutions for forest management andregional development, the police and customs offi-

18


cials. A stakeholder list with contact informationappears in annex 1.

LEGAL FRAMEWORK

Legislation

Suriname last updated its forest legislation in 1992,when the Timber Act of 1948 was replaced by theFMA. Since then, there have been ongoing discus-sions concerning needed adjustments. The SBB hassubmitted a proposal to the government foramending the act, adding a number of articles thatwould enable the establishment and functioning ofBOSNAS as the country’s forest management insti-tution.

Laws aimed at preventing illegal forest activitiesare:

1. Forest Management Act 2. Criminal Code3. Economic Decree4. Nature Conservation Act

Penalties imposed on violators are listed for eachlaw:

■ Forest Management Act• Warning to first-time offender• License revocation• Confiscation of logs• Public sale of confiscated logs• Prohibition of the export of illegally pro-

duced timber■ Criminal Code

• Fines• Imprisonment

■ Economic Decree • Fines• Imprisonment

At present, five fixed fines are assigned to viola-tions, all of which are based on the fees or taxes due.They apply to the following violations:

■ Felling of undersized trees■ Felling of protected tree species ■ Fraudulent documentation of tagged timber

■ Transportation of wood without the appropriatewaybill

■ Unauthorized felling of trees or gathering ofnon-timber forest products

For the first four offenses, the fine is five timesthe amount of the fees or taxes due (US$25–30).The fine for the last offense is set at three times thefees or taxes due (US$15–18).

Incentives and disincentives to legalizeforestry operations

No specific disincentives or incentives to legalizeforestry operations have been identified. However,it is felt that the administrative or operational reso-lution of violations—including the payment offine—is becoming part of the normal productionprocess. Fines for minor violations are not regardedas punishment, but as alternative methods for com-plying with legal requirements. An example is “tol-erated harvest” in concessions with expired licenses,or outside of specified areas of the state forest.These are situations in which the law and actualpolicy differ, and enforcement becomes flexible.Excessive or unrealistic requirements and standardsare also subject to flexible enforcement. A numberof examples of flexible enforcement within the sys-tem are given below.

■ In expired concessions, logging activities of theformer license holders are in some cases toler-ated while the person is given the chance torenew his license. In such circumstances, alongwith the normal fee, a “fine” of 200 percent ischarged.

■ On the islands in the hydro-energy lake andaround the lake, loggers from neighboring com-munities are still allowed to harvest trees. Theyhave never applied for or been given a license fortheir activities. They are required to pay twicethe normal fees for the logs harvested.

■ Harvesting of the natural rubber-producingspecies (Manilkara bidentata) is forbidden. TheSBB is aware of the fact that natural rubber pro-duction is not very feasible and that there is a bigdemand for the species as a timber tree. In anumber of cases, loggers have harvested the treesand paid the extra fees to get hold of this highlyappreciated timber tree.

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FOREST SECTOR INSTITUTIONAL ANALYSIS

■ The species Vouaca americana is not only valu-able for furniture making, but is also used wide-ly for the production of utility poles. Trees cutfor poles often don’t have the minimum diame-ter of 35 centimeters. No fines are imposed forthis type of violation.

■ To promote sustainable production under theFMA, logging is only allowed with approvedmanagement plans. This is also mentioned inthe terms in the concession license, but very fewoperators have approved plans (Playfair 2006).Since the producers neither have the knowledgenor the means to prepare a management plan,the SBB has introduced the concept of extensivemanagement concessions and is gradually intro-ducing proper management practices.

Procedures in timber sales

Although regulations for timber sales in publicforests have been prepared, they have not beenimplemented. The main constraint has been thedifficulty of developing procedures that will allowtransparency and equitable opportunities for allpotential bidders. The FAO recommended addi-tional guidelines as a supplement to the issuance ofconcessions (Mitchell 1998).

The government sales of seized timber usuallyinvolve small volumes. Sales are advertised in localnewspapers and companies are invited to bid. Thissystem seems to be operating adequately. Potential

buyers often include the offending company andother companies operating in the same areas.

Procedures for logging operations

Table 5 shows the required activities and proce-dures for logging operations and estimated costs.

Shortcomings in the legal system regardingillegal forestry activities

The capacity of the judicial system to deal withforestry violations is very limited, due to the gener-al shortage of judges and prosecutors. Because ofthis situation, criminal and other legal cases cantake a very long time before they reach the court.The judicial system is providing alternatives to dealwith the less serious cases outside the court. Withinthe Council for Public Prosecution a special officeris assigned to deal with forestry-related crimes.After consultation with this public prosecutor,many offenses are handled administratively by theSBB itself. While this is more efficient, it does senda message to potential offenders that harsh punish-ment is unlikely.

Current penalties are not a serious deterrent toviolations. The fines are probably set too low, andviolators suffer no other negative consequences fortheir actions. In some instances, illegally producedwood is seized, but violators can pay the fines andreclaim the timber.

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TABLE 5Logging Activities

ActivityAdministrative

costsEstimated cost for compliance

Pre-logging License Application US$3

Preparatorylogging activities

• Preparation of logging plan — US$5,000

• Delineation of concession boundaries• Execution of harvesting inventory• Preparation of harvesting plan• Marking of trees to be felled

— —

Logging• Filling in cutting register• Marking stumps• Tagging logs

< US$1 per form

—

With the exception of the five specific caseswhere the penalty is fixed, all other violations of thelaw or the logging prescriptions are dealt with on anad hoc basis. It is left to the judgment of the forestguard to decide what action to take in a specificcase. This is particularly difficult because the SBB isstill in the process of bringing the timber sectorunder the regimen of sustainable production.

Institutional preconditions for improvinglegal compliance

The institutions responsible for law enforcementmust have legal authority to act, and operationalcapacity in terms of personnel, material, and equip-ment. Current constraints for industry compliancewith the law also need to be addressed.

Overall, government administration inSuriname is very centralized. All government agen-cies and other relevant offices for doing business areheadquartered in Paramaribo. Only a few agencieshave permanent installations in the other urbancenters of the coastal area. Decentralization of therelevant departments and empowerment of SBBfield stations to deal with administrative procedureswould remove one barrier for producer compli-ance. This is particularly true for legal operation ofconcessions in the interior.

The enforcement capacity in the forest sector isweak. The two main institutions for law enforce-ment, the SBB and the police, both have insufficientmanpower and logistical support to execute controlin the forest areas. Effectiveness could be improvedthrough better cooperation, e.g. regular meetings toexchange information, and implementation of jointfield operations.

Lead field officers require adequate training andmotivation. Training and awareness on the issue ofsustainable forest management is needed to makeboth forest guards and police officers better awareof the consequences of illegal activities and moti-vate them to take proper action.

Alternative means for the funding of control andmonitoring activities for sustainable forest manage-ment has been widely discussed. In 1994, a processled by the FAO project was set in motion to makethe forest management authority independent fromthe direct political and financial control of the cen-tral government. When the initial project funding

for the SBB ran out, this institution again becamedependent on the central government and its budg-etary procedures. This greatly delayed operationsand hindered the execution of tasks.

It has been suggested that the SBB should beself-funding in order to exercise its responsibilitieseffectively, and with a minimum of bureaucracyand delay. A management fee paid by forest opera-tors would fund the monitoring and control activi-ties of the SBB and BOSNAS, once it is established.

Monitoring and control system

Proper law enforcement requires reliable informa-tion systems to determine the legal status of round-wood and timber. The SBB has put a great deal ofeffort into the development of a tracking system tomonitor the flow of wood along the productionchain. The key is the assignment of a unique num-ber to each log, which is linked to a cutting registerfor each harvesting compartment in the concessionarea, and waybills during the transport. The systemsused by the SBB include the LOGPRO timber pro-duction database and a geographic information sys-tem (GIS) database for the forestry areas.

Agencies in forest law enforcement

Relevant agencies in forest law enforcement are:

■ The Forest Service (LBB). The LBB is the legalauthority in charge of forest management in thebroadest sense of the word, including natureconservation

■ The Nature Conservation Division of LBB is thedesignated CITES authority in Suriname. It isresponsible for issuing export permits for allCITES species

■ The Foundation for Forest Management andProduction Control (SBB) works under themandate of the LBB and is involved in the man-agement of the production forests regarding thesupervision and control of logging.

■ The Council of Public Prosecution of theMinistry of Justice. The public prosecutor isresponsible for the prosecution of violations ofthe law, including the Forest Management Act.

■ The National Police Force has the authority totake action on violations of any law.

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Capacity at the SBB for monitoring andcontrol

The control and monitoring system of the SBB iscomprised of two main sections:

1. Production Planning (PDM)2. Production Control (PCM)

A total of 55 people are engaged in the monitor-ing, control, and enforcement activities of these sec-tions. Production Control has a staff of 50, and theremaining five people work in ProductionPlanning.

The Production Planning Department monitorspreproduction activities, including:

■ Assessment of long-term exploitation plans(outline management plan) and the harvestingplan

■ Field checks and assistance in the demarcationof concessions and the layout of productioncompartments and roads

■ Field checks of forest inventories■ Field checks of the selection and marking of

trees for felling

Law enforcement is the responsibility of 50 for-est guards in the Production Control Department.Thirteen are authorized as police officers to takelegal action under the regulations of the Code ofCriminal Procedure.

The Production Control Department has eightstations, three of which are roadside check stations,and the other five are used as base stations for fieldoperations. Each field station is manned by two tothree forest guards at a time. The department alsohas sawmill and export control units. The sawmillcontrol unit consists of four to six persons, and theexport control unit consists of four persons, ofwhom three are timber inspectors.

From the base stations, the forest guards makeregular visits to the production areas in their terri-tory. Their main function is to review and verifyfelling records. This is done at the request of thelogger and through random visits. Stumpage con-trol is done in the forest, and registries and tags arechecked at the forest landings. The base stationteam includes a forest guard with the authority of

an extraordinary police officer, a log scaler, and atree spotter.

The roadside stations are manned around theclock. They exercise control over wood transport,and truckers are obliged to stop at roadside fieldstations and have their waybills checked by the for-est guards.

Sawmills are the final control point for timberentering the domestic market. The main objectivesare to identify illegally produced timber and tomake sure that the required fees are paid on all logsentering the market. The sawmill control unitmakes regular visits to sawmills to verify the originof the logs. Untagged timber is considered illegaland is confiscated.

The sawmill control unit seeks to visit eachsawmill at least twice a week. With about 50 opera-tional sawmills, this implies 100 visits per week.Given current staffing, this gives the inspectorsbarely enough time to check all incoming logs.Inspection visits have been expanded to include twoor three retailers of minor wood products. Otherconsumers of logs or roughly processed wood arenot yet included in the inspection rotation.

When advised of illegal activity, the controlteams respond as possible. The sawmill control unitis also in charge of controlling the mobile mills inthe forest areas. Forest guards usually are aware ofthe location of the mobile mills and their move-ments. Currently no regular inspection visits aremade to these sites.

Monitoring and control activities in timberproduction.

Control and monitoring is inadequate due to theinstitutional weaknesses of the SBB. There is ashortage of forest guards, and SBB vehicles are notin good operating condition. The SBB has started anew training program and expects to graduate 30new forest guards. This will bring the total numberof forest guards available for monitoring and con-trol to about 75. In the next cycle, another 30 peo-ple will be trained.

A major problem for enforcement and monitor-ing is the large production area and the dispersionof operational sites. This makes field monitoringand control of all production activities ratherunmanageable and expensive.

22


Monitoring of other forest productionactivities

SBB monitoring activities are focused on produc-tion activities on public forest areas (e.g. conces-sions and areas under incidental cutting licenses)and commercial timber production in communalforests. Production of wood on private land andsubsistence production in communal forests is notmonitored by the SBB, except when timber fromthese areas is transported off site.

Illegally harvested logs from public forestlandare detected through roadside inspections and visitsto sawmills. The production of minor wood prod-ucts is also monitored as possible, and the quanti-ties of the different products transported are regis-tered. The production of non-timber forestproducts, which is mostly done on an informalbasis, is not monitored.

Dealing with violations

In the past, violations were reported to the generaldirector of the SBB. All cases were settled without

taking formal legal action. Nonetheless, a numberof violations of the Forest Management Act are alsocovered under the regulations of the Decree onEconomic Crimes, and therefore considered moreserious offenses. Since mid-2005, the SBB hasreferred these offenses to the judiciary.

From July to December 2005, about 150 offens-es were reported In the first eight months of 2006,an additional 164 cases were reported. The officialpolicy is to settle less serious offenses and incidentalwhat is meant by incidental violations by first-timeoffenders administratively within the SBB. Only 15to 20 percent of the reported cases were brought tothe attention of the public prosecutor. Normally,the Council for the Prosecution of CriminalOffenses sends its cases to cantonal judges, or settlesthem by assessing pre-established fines. Very fewviolators of the FMA are dealt with by the cantonaljudges. In 2005, only two offenders were convictedin these courts.

The probability of detecting illegal activitiesdepends on the type of activity, and the product andquantity involved. The detection rate of illegally

23


Activity Indicator Responsibility

Pre-logging Application for license Assessment of application MIN of RGB/SBB

Preparatory logging activities

Preparation of logging plan Assessment of plans PDM

Delineation of concession

boundaries

Monitoring positioning of

boundariesPDM/GIS office

Execution of harvesting inventory Monitoring execution and results PDM

Preparation of harvesting plan Assessment of plans PDM

Marking of trees to be felled Monitoring PDM

Logging

Filling in cutting register

Marking stumps

Tagging logs

Control of cutting register

Stumpage control

Verification of tags

PCM/Base station forest guards

Transport of logs with waybill

Control of waybills

Monitoring quantity

Verification of tags

PCM/Roadside station forest

guards

Processing SawmillingSawmill control

Verification of origin of woodPCM/Sawmill unit

Export GradingVerification of origin of wood

Quality and quantity controlPCM/Wood inspectors; Customs

TABLE 6Monitoring and Control Activities

obtained round logs is high, according to the SBB.With the log tracking system operational, everylegally produced log that appears at landings, on theroad, or at processing sites, can be traced back to itsorigin. Untagged logs are considered illegal.

Illegal sawn wood transported in closed contain-er trucks is more likely to go undetected. However,the forest guards with police authority can inspectsuspicious freight in private and public vehicles.

Criminal offenses are settled within two weeks ofdetection. This is the result of assigning a specialofficer dealing with forest sector violations in theCouncil for Prosecution

The issue of corruption

The management of the SBB does not believe that aculture of corruption exists within the organization.Although the salaries of the forest guards are nothigh (US$300 per month including allowances) thelog tracking system is a strong deterrent to corrup-tion. Discrepancies in the registered volumes at thecheckpoints can be easily detected (SBB, personalcommunication). Given the likelihood of detection,the private sector appears unwilling to pay for theextra costs involved with corruption. Petty corrup-

tion may occur when forest guards ignore certainviolations.

In earlier years, corruption did play a role in theallocation of timber rights. Both political favoritismand bribery by multinational brokers threatenedthe equitable issuance of concessions and licenses.Political favoritism was a problem for severaldecades when political friends and sponsors of gov-ernmental parties were given concessions withoutmeeting the legal requirements. Cases of briberybecame known after 1994, when several multina-tionals from Southeast Asia came to Suriname andrequested large tracts of forests from the govern-ment. To get access to the political decision makers,bribes were offered to civil servants in relevantposts.

In the past few years, corruption has decreasednoticeably. This is due in part to the increasedtransparency of the procedures for obtaining licens-es and concessions. Even though this situation nolonger occurs, large areas of forest remain in thecontrol of nonproductive companies. As a result,there are fewer areas available to bona fide loggers,and illegal harvesting in inactive concessions andunassigned public forestland is more frequent thanit would otherwise be.

24


SOCIOECONOMIC ROOT CAUSES OFILLEGAL ACTIVITIES IN FORESTRY

The socioeconomic situation of forestproducers

Small entrepreneurs, with an annual roundwoodproduction of less than 2,000 cubic meters, accountfor more than 70 percent of all logging operationsin Suriname. Violations by these producers areoften attributed to their inability to follow adminis-trative procedures or fulfill the technical require-ments for sustainable timber production. Bothworkers and management alike have little or no for-mal education and lack awareness of the require-ments for sustainable forest management or under-standing of the legal regulations. This is also true formid-size companies, and to a certain extent for themultinational (Asian) companies.

The main cause of illegal activity is the highpoverty rate, which is especially severe for tribalpeoples in the interior. The lack of alternativeemployment opportunities for workers fromindigenous and maroon communities has pushedmany to become subemployed in the informal sec-tor. They make up a group of local entrepreneurswho use chain saws or mobile sawmills and work inboth the communal and public forests.

The opportunities for these individuals to obtaintimber-cutting rights are currently limited.1 Inaddition, law enforcement officers and forestguards are not trained to deal with tribal people,and lack sufficient time and skills to settle matterssatisfactorily for all stakeholders.

The issue of good governance

There is a general lack of good governance inSuriname. The severe economic crisis of the pastfew decades continues to limit the effectiveness ofgovernmental institutions, and Surinamese societyin general. According to the Index of EconomicFreedom indicates that Suriname has an overabun-dance of governmental controls in pricing, licens-ing, and other areas. This partially applies to theforest sector. Illegal activities in both commercialand subsistence production are often related to thebureaucratic, time-consuming administrative pro-cedures necessary for obtaining logging licenses,and to comply with the requirements of the moni-toring and control system. The forest sector com-plains that the SBB’s production control systemactually hinders efficient logging operations.

Underlying Causes of Illegal Activities

CHAPTER FOUR

25

1. In the past, every district commissioner had land at his dis-posal, which he could allot for short periods to small pro-ducers.

The industry also argues that the SBB, under theauthority of the Suriname Forest Service, lacks alegal mandate for executing control over forest pro-duction, and it therefore can be said that the state isalso involved in illegal activities.

Poor governance and the acceptance of illegalityin the interior are also seen as the results of the pastinternal unrest in the country (1986–92). The con-flict arose between an armed group of maroons andthe national army. It eventually spread across thecountry and involved all the maroon and indige-nous people’s tribes. Since the conclusion of fight-ing, the situation of the people in the interior hasfailed to improve. There are still tensions under-neath the surface, and the national government isblamed for not granting formal rights to the tribalpopulations for the lands they occupy and haveused for centuries.

ECONOMIC INCENTIVES ANDDISINCENTIVES TO COMPLY WITHEXISTING LAWS

A difference in production costs usually existsbetween illegally and legally produced timber. Thecost of compliance with the Forest ManagementAct includes administrative costs for monitoring bythe SBB, fees paid to the state, and extra actionsrequired for sustainable production. In a situationwhere the timber market is open to both illegallyand legally produced wood, it is understandablethat these costs can be considered an optional bur-den for producers. The registered saw mills havefrequent control visits by the SBB, and supplythemselves largely from legal sources, but there isvirtually no monitoring of the furniture sector, theindependent wood markets, and the constructionsector. Small producers converting round logs intosawn wood with either chain saws or mobile millsdeliver sawn wood directly to these secondaryindustries and can commercialize their productionfor about 35 percent less than the sawmills (ABE).

A disincentive for taking part in illegal activitiesis the possible loss of the wood and the cost of fines.The highest penalty is confiscation of the wood andpayment of a fine of five times the normal fees. It isdoubtful that the penalties as set are considered a

significant disincentive for the industry. Sometimesit appears that the larger operators consider thepayment of these penalties a part of the cost ofdoing business.

KEY ISSUES WITHIN THE GOVERNMENTAFFECTING ILLEGAL LOGGING

One general cause for the poor compliance is thelack of sufficient capacity in the judicial system.With the control system based on log tracking setup by the SBB, it should be possible to detect theorigin of every log encountered at whatever stage inthe production, transport, and processing cycle.However, the system can only function properly ifall production sites are identified and all destina-tions for timber are monitored.

Control of timber transport is almost complete-ly limited to the more detectable log shipments.Smaller-dimension wood products, such as sawnwood, can pass by the control stations withoutdetection by forest guards. The SBB does not havethe manpower and infrastructure in place to ade-quately control forest production and extend themonitoring further. The poor financial status of theSBB is a principal cause of its institutional weak-ness. The SBB currently operates with governmentsubsidies, rather than the management fees fore-seen when the SBB was established in 1998.

Improved cooperation between police and theSBB would promote more effective control. Theimplementation of enforcement activities is some-what contradictory. Policies and management sys-tems for sustainable timber production are stillevolving, and in many instances, no clear-cut rulesapply. The policy of “toleration” of infractions by“first-time” offenders may send the wrong messageto loggers. The same issue applies to administra-tively settled cases in which the fines are low and theconfiscated wood is returned to the loggers once thefines are paid.

Another aspect of tolerance is illustrated by thefact that 30 percent of the concessions are notactive, regardless of the law that stipulates that suchconcessions should be withdrawn. The authoritiesare sending out mixed messages that don’t helpmove the sector toward greater legality.

26


NATIONAL FOREST DATABASE

The government is criticized for not having ade-quate data available on the forest sector. This is seenas one of the causes for poor land-use planning andconcession management (ITTO 2006). Surinamelacks a proper forest resource assessment, and thevalue of the total timber stock is not known.Furthermore, no information on potential sourcesof financing forest information system is available(ITTO 2003).

Improved management of a forestry databaseand GIS will lead to better planning at the policyand operational levels. The 2003 National ForestPolicy recommends establishing a central informa-tion system for data storage and processing of landand land tenure (cadastre). The business communi-ty would gain from having such a database andinformation at its disposal. Another ITTO recom-mendation calls on the government to increasetransparency concerning the availability and qualityof concessions, as well as the selection and grantingprocess. More information is needed about currentstocking as a basis for sustainable forest manage-ment and sound concession policy (ITTO 2003).

LOGPRO is the SBB’s system for the monitoringof log production and flow. It is a computerizedsystem showing the log origin, volume, and desti-nation. The database on wood imports and exportsis maintained by the General Bureau for the

Statistics, which uses the Ascicuda system devel-oped by customs officials. Raw data on exports isprovided by the SBB. The concession databasedeveloped by the SBB uses a GIS and links a forestland-use map with actual log flow. The informationis regularly updated with information from theother land management departments like the LandManagement Service and the Institute forManagement of the Geographical Land InformationSystem (GLIS).

Compliance with legal and regulatory standardsis monitored by the SBB, and includes the type andnumber of violations, and the persons and compa-nies involved. The Office of the Public Prosecutorsmaintains a separate database on the offensesbrought to this office.

CAPACITY FOR MAPPING ANDDEMARCATION OF FORESTLANDS

The relevant government institutions have the basicskills to use GIS and GPS technology for mappingand demarcation of land. The SBB has played a sig-nificant role in exploring the possibilities of usingthis technology in Suriname. However, the existingcapacity of GIS and GPS technology is insufficientto fulfill in the needs of the sector. (WWF 2005).

A number of SBB forest guards are trained in theuse of GPS equipment and other measuring instru-

Knowledge Management

CHAPTER FIVE

27

ments. They use these skills during their fieldinspections for production control, and for moni-toring the demarcation of concession boundaries.The regulations require that surveyors superviseboundary demarcation. However, the number ofauthorized surveyors is small, and they are general-ly not available for work in remote areas. For thisreason, the SBB allows loggers to provisionallymark boundaries, which are then verified by theSBB with GPS. In case of disputes, the state landsurveyor has decisive authority. It is worth notingthat the land registration system in Suriname—more precisely the geographical coordinate systemapplied on basic topographic maps—does not fullysupport the use of GPS.

Forests assessment and databaseinformation availability to the public

The government has a central role in the storageand retrieval of information for the forest industryand the public. The SBB has put considerableresources into this effort. Its datasets, with informa-tion on forests, forest use, and timber production, islargely available to the public. Proprietary informa-tion on license and concession holders remainsconfidential. Although data is not officially pub-lished, it is available on request. At this time, theproposed Web site of the SBB is not operational anddoes not allow access to the data on the Internet.

The SBB’s GIS unit produces maps of specificparts of the production areas, including inventorymaps. In general, it is responsible for the manage-ment of the GIS database and the supply of up-to-date forest production maps to the other depart-ments of the SBB, and to external institutions. TheDepartment for Production Planning provides tech-nical advice and information to potential investors.

The organizations of the timber industry pro-duced the CD-ROM Sustainable Forest UsePortrayed, for the Suriname forest industry in 2004.The CD-ROM provides background informationon sustainable forest management in Suriname,including information on forest legislation, exportregulations, guidelines for reduced-impact logging,and a database of the forest industry.

The Center for Agricultural Research inSuriname (CELOS) is a second site for databasestorage and retrieval. It is involved in research onthe assessment of natural resources. By interpreta-tion of remote sensing data, and with the use of GIStechnology, CELOS made the first publicly availabledigital database on the natural resources ofSuriname. Information on the prevailing foresttypes, and information on the provisional demarca-tion of the specially protected forests and the timberproduction areas, is based on CELOS’ classification,done in 1999 through the interpretation of LandsatTM data. This information is available to potentialusers and is provided at cost.

28


INTRODUCTION

Since the formulation of the National Forest Policyin 2003, a number of other initiatives have beenundertaken by the government to develop policiesto deal with the main problems of the stagnantdevelopment of the forest sector. The private sectoralso produced a policy document promoting tim-ber production in the country. In the process ofidentifying strategies for the implementation of theNational Forest Policy, stakeholders mentioned thelack of commitment from the government as theunderlying cause for the stagnant development.ITTO has twice provided assistance to the Surinamegovernment, namely in 2003 and 2006. In this sec-tion, the main factors that affect the sector as iden-tified through several processes will be used to dis-cuss the sector’s competitiveness.

The majority of the Surinamese timber opera-tors are categorized as medium and small enterpris-es. Individual capacity is much reduced than otherAmazonian countries and production is irregular.ITTO’s 2003 analysis of the forest sector concludedthat Suriname needs an enabling, coherent policyand legal framework, together with a more entre-preneurial private sector, if it hopes to become a netexporter of wood products. The private sector has

also identified the lack of an enabling environmentas one of the main constraints that depresses theforest sector (ITTO 2006). The government per-ceives the poor management of the forest compa-nies as the main constraint on the forest sector.

The key groups that can be identified in the for-est production sector are:

■ Large domestic forest companies■ Small- and medium-size domestic forest compa-

nies■ Local entrepreneurs from tribal communities■ Tribal communities■ Foreign companies

While each segment’s competitiveness is affecteddifferently, the poor environment for production isa constraint for all. As mentioned earlier, the poten-tial sustainable timber production varies between500,000 and 1.5 million cubic meters of roundwoodper year. However, the actual timber productionhas for decades averaged only 150,000 cubic metersper year. This means that the available potential isutilized at only 10 to 30 percent of capacity. Themost important restrictions and constraints thataffect competitiveness are discussed below. Theyare not listed in any order of priority.

Forest Sector Competitiveness

CHAPTER SIX

29

RESTRICTIONS AND CONSTRAINTSAFFECTING FOREST SECTORCOMPETITIVENESS

Forestry legislation

For many years, it has been observed that there is aneed to revise the current Forest Management Act.In 2003, ITTO recommended revising the act. Inparticular, ITTO suggested a change in the design ofthe forest revenue system and the criteria for deter-mining concession size and duration. These aspectsneed to be linked in such a way that they promotesustainable forest management, as well as strength-en the private sector. The changes would furtherminimize the need for administration and control.ITTO’s recommendations are comparable with theFAO’s advice to the government for revision of therevenue and concession systems. Under the currentconcession system, only companies with processingfacilities can be granted a mid- to long-term con-cession, and only a vertical “integrated” companycan receive a long-term concession. This hampersthe sustainability and the security of the invest-ments of logging companies.

Capacity and professionalism in the forestsector

Much of the local timber industry originated fromfamily businesses established in the 1950s.Management is closely held, and technologicaldevelopment has been minimal. Only a small num-ber of logging enterprises are practicing intensivemanagement, while even fewer follow managementplans. As a result, logging is very inefficient and notcost-effective. The average felling loss is estimatedat 20 percent, while the processing losses are esti-mated to reach 60 percent.

There is a shortage of competent staff at all lev-els, with little interest in a career in forestry. Jobs inthe forest sector are often associated with low payand unattractive working conditions. The domesticindustry (with the exception of a few larger compa-nies) does not make good use of the country’s exist-ing vocational training institute to upgrade the levelof its forest workers. This has contributed to theloss of trained workers and professionals to foreigncompanies and forest-related international organi-zations.

Smaller companies, including entrepreneursfrom the tribal populations in the interior, oftenhave only minimal on-the-job training, and lackmanagerial skills to run a business profitably. At thesame time, workers and management of foreigncompanies, especially from South East Asia, lackknowledge of the specific forestry conditions inSuriname.

The limited institutional capacity also affectsforest administration, research, and training insti-tutions, which hinders their capacity to promotesector development. The study Forest PolicyImplementation concluded that the sector organi-zations have a shortage of capacity and financialmeans to lead and guide private industry. TheChamber of Commerce has helped members of thesector join forces to negotiate forestry-related issueswith the government.

Land rights

The lack of formal rights to resources surroundingtheir villages has long been a constraint on develop-ment of local entrepreneurship within the tribalcommunities. More broadly, the issue of access toforests and traditional use rights in concessionsremains unclear for the stakeholders and leads toviolations of the forest law.

Forestry infrastructure

Roads and bridges are in an alarmingly bad statedue to inadequate maintenance. The road networkis not suitable for heavy loads, especially during thewet season. Tribal villages depend upon these roads,and suffer the consequences of road deterioration.Small-scale producers of sawn wood and other for-est products are less affected since they use lightervehicles that cause less damage. Local entrepreneurseven transport sawn wood using public buses.Infrastructure problems don’t end when the logsreach the capital. The harbor facilities are not suit-able for the unloading of heavy and bulky logs,which is another bottleneck for the industry.

Credit and investments

Limited access to credit is a general problem for theproductive sector in Suriname. The forest industryis unsatisfied with the treatment it receives from the

30


banks (National Forest Policy 2003). Various com-panies have had problems getting investment loans.The banks classify the forest sector as “highly risky.”The conditions in the interior, including theabsence of police officers and reduced public safety,extensive illegal logging activities, and poor compli-ance with international standards, contribute to thepoor record companies have in repaying loans. (R.Kalloe, personal information). In Suriname, thegranting of credits is coupled with the possession ofreal property, and banks do not accept concessionlicenses as collateral.

Wood transport companies, exporters, andindependent forest enterprises with rights over agri-cultural land and other properties, are eligible forcredit. Even for them, the conditions are unfavor-able. It is somewhat easier for wood processors andmarket traders to obtain credit because their salesare considered guaranteed, making repayment lessuncertain. Most companies are not aware of alter-native sources of funding, and even if they were,their managers’ lack of formal education wouldmake it difficult for them to access it.

Communication and cooperation

The lack of effective communication between stake-holders in the sector is a serious problem.Periodically, stakeholders get involved in major for-est policy processes, but to date no permanentforum with the government exists. This applies toboth communication by the government with theprivate sector, as well as with the people of the inte-rior. ITTO (2003) remarked that the governmentshould work more closely with the private sector,social organizations, and other stakeholders todevelop a common agenda to promote integral andsustainable forest management. ITTO further rec-ommended developing more consultative and par-ticipatory mechanisms to involve stakeholders asmuch as possible in decision-making processes.

INCREASING SECTOR COMPETITIVENESS

It is generally recognized that there is an unevenplaying field for investors in the forest sector.Foreign investors receive preferential fiscal treat-ment, while producers from tribal communities

have fewer regulations with which to comply. Illegaltimber producers operate at lower costs. Eligibilityrequirements in the sector should include concreteand verifiable standards for the education, training,and skills of management and forest workers (ITTO2003).

The suggested policy measures to improve sectorcompetitiveness are based on strategic developmentinitiatives of the government. The latest of these ini-tiatives is the execution of the ITTO pre-project“Improved strategies and training needs assessmentto achieve sustainable forest management inSuriname.” This project lists these strategic objec-tives:

■ Revise the Forest Management Act and forestregulations

■ Promote investments in the forest sector■ Improve compliance in the sector■ Provide information and support for sustainable

forest management■ Improve capacity of industry organizations and

public sector agencies ■ Revise land-use and land-rights systems■ Promote democratic forms of management of

communal forests■ Improve cooperation■ Increase the information base

Key stakeholders for increasing competitivenessof the sector include:

■ The Ministry of Physical Planning, Land, andForest Management

■ The Foundation for Forest Management andProduction Control

■ The Ministry of Regional Development■ The Ministry of Justice and Police■ The sector organizations ASHU, ABE ■ Chamber of Commerce ■ Tribal organizations

Effective implementation of the measures willonly be feasible if stakeholders can agree on trans-parent participatory processes for the execution andmonitoring of activities and projects. Stakeholderconsultations organized and led by the governmenthave not resulted in full acceptance of the recom-mendations.

31

FOREST SECTOR COMPETITIVENESS

From the discussions with the experts, it isapparent that illegal logging is not identifiedas a major issue in Suriname. However,

addressing illegal activities is important for thecountry’s international and national image. In2005, the total amount of illegally produced timberrecorded by the SBB amounted to almost 18,000cubic meters of roundwood equivalent, which rep-resents almost 10 percent of the total registeredproduction. The SBB estimates that an additional20 percent (36,000 cubic meters) went undetected.

Illegal activities in the forest sector were muchmore severe and extensive in the previous decade.Demand for roundwood by multinational forestcompanies was high, and the country experienceduncontrolled harvesting. Political favoritism andbribery made things worse. Since then the situationhas improved, but Suriname’s rating on theTransparency International Corruption PerceptionIndex is still very low (3.2).

Poverty and the lack of good governance seem tobe the main underlying causes for those segments ofthe population who operate small-scale enterprisesin a sphere of informality or illegality. On the plusside, political will to improve the situation in theforest sector has been demonstrated by the approvalof the Council of Ministries for the establishment ofa strengthened forest management authority.

The following conclusions and recommendationcome from this quick assessment of the state of ille-gal activities within Suriname’s timber sector.

■ The logging sector over the past decade wasunderdeveloped, consisting mainly of smallentrepreneurs struggling to make a living. Thenumber of more technologically advanced andlarger companies is small, but increasing. Thiscould lead to an increase in commercially drivenillegal activities. The growing interest of multi-nationals to invest in the country could also leadto an increased volume of illegally producedwood. Institutional capacity building should bea higher priority in anticipation of these poten-tially negative impacts.

■ The lack of an enabling environment is regardedto be the main constraint for development of theforest sector. ITTO suggests revising the ForestManagement Act, especially regarding the forestrevenue system and criteria for concession sizeand duration in order to promote sustainableforest management and a strong private sector.

■ Poor management of forest companies and lackof professionalism is another constraint on thesector. Currently, only a small proportion of the

Conclusions and Recommendations

CHAPTER SEVEN

33

logging enterprises are practicing intensive man-agement. On all levels, there is a shortage ofcompetent staff, and there is little interestamong young people for a career in forestry. Atthe same time, there is a lack of adequate data onthe forest sector.

■ Both commercial and poverty-driven illegalactivities are promoted by the bureaucratic andtime-consuming administrative procedures forobtaining logging licenses and for adhering tothe administrative requirements for the moni-toring of production by the SBB. Developmentof a new concession policy is one strategic actionmentioned in the forest policy that might con-tribute to resolving this issue. Decentralizationof the authorities to deal with administrativeprocedures would remove another barrier forthe producers to meet the administrativerequirements.

■ Violations by small and illegal producers (40percent of whom are descendants of tribal pop-ulations) are often related to their inability tomeet the technical requirements for sustainabletimber production. Small producers usuallyhave only a limited amount of training in theforest sector and lack managerial and businessskills. The SBB is expected to address the lack ofknowledge about the requirements for sustain-able forest management by implementing anawareness project with the small producers andcommunities in the interior. This programshould be expanded to include all producers inthe sector.

■ Poor governance and law enforcement, alongwith the acceptance of illegality in the forestareas, might be the result of the past internalwar, continuing violence in the interior, and theeconomic crisis in the country. The log trackingsystem for timber production and GIS databasefor forestry land use are the SBB’s basic instru-ments for production control. However, thehuman capacity required to use these tools isinadequate. Establishment of a self-funding for-est management authority will help to solve theissue of inadequate control. The implementa-tion of the Ministry of Justice Sectoral Planshould contribute to improved law and order.

■ The tendency to settle offenses administratively,without judicial intervention, is seen as a weak-ness in the administration and enforcement oflaws. Although penalties are partially estab-lished, there is still no single, uniform treatmentof violations. This situation is not unique to theforestry sector. Overall, the judicial system hasinadequate capacity, and suffers shortages ofjudges and public prosecutors. More transparentand clear implementation of the regulations isneeded. Clear agreements between law enforce-ment institutions on how to deal with typical sit-uations could help resolve the problem. Lawenforcement officers at the SBB and relevantpolice officers need to improve their awareness,knowledge, skills, and motivation concerningenforcement of the forestry act. It is further rec-ommended that all staff improve their knowl-edge of sustainable forest management issues.

■ The implementation of sustainable timber pro-duction systems in Suriname is still evolving. Anumber of regulations to ensure sustainability inthe public production forests are not yet manda-tory for all producers. Another problem iscaused by the fact that certain texts do not reflectcurrent policy. This can be partially resolved bymaking clear cooperation agreements within lawenforcement institutions.

■ Border trade issues with Guyana continue to bea major problem for the sector. Illegal loggingcan easily go undetected due to the lack of effec-tive law enforcement at the border, and the gen-eral remoteness of the area. Timber smugglinginto Guyana requires further discussion with theGuyanese counterparts of the SBB and higherlevels of the government.

■ Illegal activities of tribal community descen-dants in the forest sector are frequently povertyrelated. The main driver behind illegal activitiesis the lack of employment opportunities. Thepopulation in the interior is considered to be lessdeveloped, and has a higher poverty rate thanthe coastal area. The implementation of a devel-opment program focused on alternative sourcesof income generation for the interior could alle-viate the poverty issue. In recognition of the sit-uation, the government has formulated a devel-

34


opment program for the interior that addressesbasic human needs and infrastructure develop-ment to promote other income-generatingopportunities. Implementation of this plan isrecommended.

■ The lack of clear user rights for tribal communi-ties in regard to the resources surrounding theirvillages has long been a constraint to the devel-opment of local entrepreneurship. The delay in

solving land right issues makes their traditionalproduction activities (logging and mining) ille-gal, even on their traditional village (forest)land. This is even more of an issue as productionis becoming increasingly market oriented.Attention has to be given to the recommenda-tion in the National Forest Policy for the gov-ernment to start a formal, structured dialogueon the matter of land tenure rights with the trib-al communities.

35

CONCLUSIONS AND RECOMMENDATIONS

Key Actors and Contacts for Addressing Illegal Activities

ANNEX 1

37

TYPE OF ORGANIZATION CONTACT PERSON ADDRESS

Tribal people’s organizations

Federation of the Council of theAucan Traditional Authorities

Mr. J.Aviankooy Abongrastraat 12/Flora-A

National Federation of MaroonOrganizations

Mr. Salomon Emanuels Anton de Komstraat 39

Maroon Women Network Ms. F. Grand-Galou Verl.Keizerstraat 92

Organization of IndigenousPeoples of Surinam (OIS)

Mr. N.Aloeman Johannes Kingstraat 7, Rainville

Sanomaro Esa Foundation(indigenous women’sorganization)

mw H.T.Vreedzaam-Joeroeja p/a PAS - Verl.Keizerstraat 92

Association of Indigenous Chiefsin Suriname (VIDS)

mw Drs. Laureen Jubithana p/a PAS - Verl.Keizerstraat 92

Wanhati/Council of theSaramaccan TraditionalAuthorities

Mr. H. Jabinip/a (PAS (via VIDS) - Verl.Keizerstraat 92

NGOs

Bureau Forum NGOs Drs. H.Wesenhagen Henck Arronstraat 126 bv

Caribbean Institute Ms. Maureen Silos Hoekstrastraat 5

Conservation International(Suriname)

Drs.W. Udenhout Kromme Elleboogstraat 20 /

Suriname ConservationFoundation

Mr .Johans N. Hofstraat 1, 4e Etage

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TYPE OF ORGANIZATION CONTACT PERSON ADDRESS

UNDP/Assistant ResidentRepresentative

Mr. M. Ooft Heerenstraat 17

Community Development FundSuriname

Mr. Roland King Kwassiestraat 8

World Wildlife Fund (WWF) Mr Ir. G.J. Zondervan Henck Arronstraat 63

Research organizations

Tropenbos Suriname Ms. Drs. Shanti Adhin p/a Prof. Dr. Ir. Ruinardlaan

Institute for Social Sciences;University (IMWO)

Drs. E.Akrum Leysweg - UvScomplex

Faculty for Agrarian Production;University of Suriname (UvS)

Mr. A. Sheikkariem UvS-complex/Leysweg

Center for Agricultural Researchin Suriname

Dr. R. van Kanten. Prof.Dr.Ir. Ruinardlaan

Governmental organizations

Ministry of Natural Resources Ms. Held Mr. de Mirandastr. 13-15

Ministry of Labor,TechnologicalDevelopment, and Environment

H. Aroma Heerenstraat 40

Ministry of Regional Development,Sipaliwini District

Mr Petrusi Zwartenhovenstraat 225

Council for the Development ofthe Interior

Mr Rudi Strijk Zwartenhovenstraat 225

Ministry of Spatial Planning, LandManagement and Forests

Ms. Marie Djosetro Cornelis Jongbawstraat

Nature Conservation Division ofthe Forest Service

Mr. B. Drakensteyn Cornelis Jongbawstraat

National Institution forEnvironment and Development

Ms. Syliva Ang Onafhankelijkheidsplein

Foundation for ForestManagement and ProductionControl

Mr. I. Krolis Ds. M.L. Kingweg pc 283

Fund for the Development of theInterior (FOB)

Mr. Steven Alfaisiep/a Terrein Commissariaat -Van Sommelsdijkstraat 2

National Planning Bureau Mr John Bouterse Dr. Sophie Redmonstraat 118

Forest industry

Platform Timber Sector (PHS) Mr. A. Gesser

Loggers Association; ABE Mr. B.Chin Ten Fung

Sawmillers Association; ASHU Mr. K. Soeltansingh

Asraf, M., R. Matai, and F. Horsten. 2000.Preliminary results of a survey of the woodprocessing industry, Ministry of NaturalResources, FAO.

Emanuels, S.S.L. 2002. We hebben honger daaromkappen wij, Paramaribo, Suriname.

FAO (Food and Agriculture Organization). 2005.“Best Practices for Improving Law Compliancein the Forestry Sector.” Forestry Paper 145,FAO, Rome, Italy.

Healy, C., and M. Heemskerk. 2005. Situationanalysis of the small-scale gold mining inSuriname. World Wide Fund for Nature.

Hendrison, J. 2002. Forest and FreshwaterResources—Section 1: Forest Management,Suriname.

ITTO International Tropical Timber Organization,2006. “Improved Strategies and AssessTraining Needs to Achieve Sustainable ForestManagement in Suriname. Pre-project papers.International Tropical Timber Organization.

ITTO (International Tropical TimberOrganization). 2003. “Diagnostic MissionSuriname.” Report. International TropicalTimber Organization

Kambel, Ellen-Rose. 2002. Resource Conflicts,Gender, and Indigenous Rights in Suriname;Local, National, and Global Perspectives.Leiden, the Netherlands.

Kambel, E., and F. MacKay. 1999. “The Rights ofIndigenous Peoples and Maroons inSuriname.” Document No. 96, InternationalWorking Group for Indigenous Affairs,Copenhagen, Denmark.

Matai, 2001. Productie van kleine houtwaren, SBB. Matai, R. 2006. Chain saw milling study. Country

report, SBB, Paramaribo, Suriname.Matai, R. 2004. “Mobile and Portable Saw Mills.”

Internal paper. SBB, Ministry of Natural Resources. National Forest

Policy. Paramaribo, Suriname 2003. Ministry of Natural Resources. Policy and Action

Program for Sustainable Management of theNon Urban Environment. Paramaribo,Suriname, 2004.

Ministry of Planning and DevelopmentCooperation. The Multi-Annual DevelopmentPlan; 2006-2011. Paramaribo, Suriname, 2006.

Mitchell, Andre. 1998. Forest Advisory Assistanceto the Ministry of Natural Resources, ForestConcessions, Food and AgricultureOrganization, Paramaribo, Suriname.

Morroy, Henk. 2002. “Mineral Resources.”Discussion paper for the development of aframework policy and strategic plan for thesustainable management of the Non UrbanEnvironmental Subsector in Suriname.

Playfair, M., and K. Tjon. 2004. IPCC, NationalReport on Emissions and Sinks Reductions of

References39

Greenhouse Gases from Changes in Land Useand Forests, NIMOS, Paramaribo, Suriname.

Playfair, M., and R. Somopawiro. 2006. “Validationof 15 Priority Indicators for Amazon ForestSustainability in Suriname.” Food andAgriculture Organization, Paramaribo,Suriname.

Sanchit, R. 2005. Preliminary outline for a workingdraft of a national action program concerningthe United Nations Conference onEnvironment and Development in Suriname;Ministry of Labor, TechnologicalDevelopment, and Environment, Paramaribo,Suriname

Sizer, N., and R. Rice. 1995. Backs to the Wall inSuriname: Forest Policy in a Country in Crisis.World Resources Insitute, Washington DC.

Skephi NGO Network for Forest Conservation inIndonesia. 1997. Indonesian Loggers inSurinam, Report on MUSA Indo-SurinamN.V.

Smith, Patricia S. 2006. Het Openbaar Ministerie inrelatie tot de milieuwetgeving in theorie en

praktijk; stageverslag; AdekUS, Fac.Maatschappij Wetenschappen; studierichtingRechten

Stichting Planbureau Suriname, MeerjarenOntwikkelingsplan 2006–2011, Regering vanSuriname, Juli 2006

Web page; Index of Economic Freedom, 2006Heritage Foundation, “Index of EconomicFreedom,” and URL

WWF (World Wide Fund for Nature). 2005.“Building Capacity at the ImplementingInstitutions to Promote Further ForestryDevelopment in Suriname.” Project docu-ment,

WWF (World Wide Fund for Nature). 2005. proj-ect, To provide the basis for further sustainableforestry development in Suriname by facilitat-ing the implementation of the national forestpolicy.

WWF-Guianas (World Wide Fund for Nature-Guianas). 2003. “The Guianas: Gold-MiningPollution Abatement Project.” Paramaribo,Suriname.

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