1
A neo-institutional economic analysis of policies and policy instrument governing non timber forest products and agro
forestry development in Cameroon
Divine Foundjem TitaJune 18, 2013 ICRAF Yaounde, Cameroon
2
Outline
1. Introduction: problem & research question
2. Theoretical lens and study objectives
3. Method : choice of study sites & products
4. Results
5. Conclusions & policy implications
31.In
trod
uctio
n
Household income
Sustainable development
Forest Agroforestry
Food security
Domestication
Subsistence needs
NTFP AFTP
41.In
trod
uctio
n
1. Longer time lags for trees to reach maturity
2. Appropriate technologies are poorly known
3.. Adverse or no national policies
4. Legal constraints from sister government sectors
Globally, and for Cameroon potential of NTFP and AFTP to
livelihoods and sustainable development are yet to be
exploited
3.. Adverse or no national policies
4. Legal constraints from sister government sectors
Globally, and for Cameroon potential of NTFP and AFTP to
livelihoods and sustainable development are yet to be
exploited
What is the problem?2. Appropriate technologies are poorly known
1. Longer time lags for trees to reach maturity
Call on national governments to device appropriate policies and institutions
5
Main research question
1.In
trod
uctio
n
What formal policies/strategies and regulations currently exist to address NTFP in Cameroon and how do they influence agroforestry development ?
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Theoretical lens
Neo-institutional economics: multi disciplinary economics, history, sociology, law, business org and political science
2.Th
eore
tical
lens
& st
udy
obje
ctive
s
Economic performance
Formal: policies, strategies, regulations, legislation
Institutions = rules of the game
Informal: norms, culture, values, ethics
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Theoretical lens operationalised2.
Theo
retic
al le
ns &
stud
y ob
jecti
ves
Effect of formal rules
on market access
Chapter 7 and 8
1994 Forestry Law and 1995 Decree of application
Policy Instruments
Customary laws,
norms ,values , culture
Access to Trees, Land , NTFP, AFTP
Producers perception• secured property rights• incentives to invest in AFTP•increased revenue
Traders access to permits •reduced TCs •reduced corruption,/rent seeking•profits/net margins •self compliance with permits
1974 Land Ordinance /land titles
Government policy on poverty reduction and sustainable exploitation of natural resources including NTFP
National and International Research
National and International N
GO
s
Interaction of formal &informal institutions
Chapter 6
Effect of formal rules
on property rights
Chapter 4 and 5
Outcomes
Outcomes
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Research objectives
Four main themes:
(i) Appraise existing policies governing AFTP/NTFP sectors
(ii) Assess the effect of existing policy on agroforestry development- farmer perspectives
(iii) Analyse interaction between formal and informal rules regulating land and trees
2.Th
eore
tical
lens
& st
udy
obje
ctive
s
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Choice of products
3.M
etho
dolo
gy
Gnetum spp: 3518 tons (10.5 m $) sold to Nigeria annually by sea
Ricinodendron heudelotii: annual trade within Cameroon ~ 750,000 $
Irvingia spp: 8.5 m $ annually from one comm forest
Cola spp: annual export estimated at 165,000 $
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Study sites
3.M
etho
dolo
gy
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Choice of respondents
3.M
etho
dolo
gy
Producers N= 394
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• Qualitative content analysis
4.Re
sults
Results objective 1: analysis of existing policies
NTFP
Agriculture
PRSP
GESP
RDSP
PSFE
Forest
0 1 2 3 4 5 6 7 8
2
3
3
6
6
7
Number
Polic
y do
cum
ents
Tree planting in general
Domes.../a
groforestr
y
Usfruct
rights
to farm
ers
Economic r
ights
Farmer e
nterpris
es (NTFP)
Research N
TFP/AFTP
Planting materia
ls 01234567 6
54 4 4
3
1
Partial conclusion: Government of Cameroon is committed to include NTFP and AFTP in its economic and sustainable development policy
• Number of policy documents addressing the issue
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Analysis of policy instruments - legislation
4.Re
sults
• Clear definition of AFTP/NTFP• Ownership and access to resources• Economic and usufruct rights
Analysis focused on
• No distinction between NTFP and AFTP• Permits are required to sell NTFP & indirectly
AFTPWhat did we find
• Disincentive to agroforestry development• Conclusions are based on theory • Farmers’ opinion required
Partial conclusion
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Results objective 2: effect of existing policies on agroforestry
• Farmers perceptions
4.Re
sults
0%
10%
20%
30%
40%
50%
60%
70%
80%76%
39% 41%
Yes No
AFTP= NTFP
(Yes )
Accept certificate of origin
(Yes )
Will not plant trees
if AFTP = NTFP
Group (yes ) ns ns +ve (**)
Education -ve(**) ns +ve(**)
No of trees planted
ns ns +ve (**)
Experience ns ns -ve (**)
Region of origin (savannah)
-ve(**) -ve(**) ns
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Partial conclusions
• Low level of awareness and enforcement of law at producers levels – what is its relevance?
• Despite negative attitudes towards policy instruments, a majority will continue to plant trees
• Number that may not plant trees is too large to be neglected
4.Re
sults
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Results objective 3:land and tree tenure security
4.Re
sults
• Village resident : this is my land sir what are you doing here?
• City man: I am developing the land. Who are you and who says it is your land? • Village resident: I am the owner of this land, i have been farming the land • for the past 30 years
• City man: how did you get the land?
• Village resident: My father gave it to me
• City man: And how did your father get the land?
• Village resident: I don’t know, what I know is that he planted that tree and he owns this land unfortunately Mr. Tom who could testify died last year
• City man: Sorry my friend, this land was given to me by father who got it from his father who fought the Meta people and seized the land from them during the German colonial period
• City man continues: I am now on retirement and have come to the village to develop my land.
And then the conflict begins, who owns the land based on formal law and by custom?
(adopted from Bromely 1989. P 220)
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Farmers perception of land and tenure security as factors of agroforestry development
4.Re
sults
Formal rules
• Ownership of land is sanctioned by a title deed
• Land with no deed = National land
• Trees on land with no title deed belongs to the state
Informal rules
• First occupant owns the land
• Tree planting symbolises ownership
Which of the two
• Guarantee security over land and trees ?
• Favours agroforestry?
• Role of cultural differences?
184.Re
sults
16%
84%
Farmers’ attitudes towards land titles
No ( Negative )Yes ( Positive)
North West
West Centre South East%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
29% 27%
6%17% 21%
Preferences for formal or customary systems
Customary system Formal system
41% 59%
Belief of ownership (Individual)
Positive attitude towards land titles
Preference for customary systems
Land conflict(yes )
+ve(*) +ve(***) -ve(*)
Form of leadership (forest)
+ve(**) ns -ve(**)
Population density
+ve(**) ns ns
Nor
th W
est
Wes
tCe
ntre
Sout
hEa
stTo
tal
Region of orgin of village
0%
20%
40%
60%
80%
100%
120%
Government
Community/chiefs
Individuals
Farmer’s perception of ownership
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Tenure security & tree planting
4.Re
sults Government Community
0
20
40
60
80
100
120
45
4
55
96
Tenure security based on fear of eviction
No yes
Disincentive to agroforestry ?
Fear of eviction: yes = 3%
Land availability: yes = 23%
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Partial conclusions• Farmers have positive attitude towards land titles however,• Where customs are intact = customary tenure is more
preferred• Where there have been cases of land conflict = title deed is
preferred • Fear of eviction not a threat to tree planting, land
availability may be the problem• Current customary systems guarantees security and favours
tree planting • Study supports evolutionary land rights theory • The state needs to protect existing customary ownership
and rights with simplified procedures to obtain land titles
4.Re
sults
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General conclusions and policy implications
• Specific strategy/ program are needed to develop, guide and implement agroforestry strategies
• Subsequent policies, regulations/legislation should make the distinction between AFTP and NTFP e.g certificates of origin
• Customary rights to land needs to be protected e.g by simplifying access to land titles
5.Co
nclu
sion
s &
pol
icy
impl
icati
ons
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Further research: getting the institutions right
How do we design optimal and efficient formal institutions and institutional arrangements to:
- manage land and trees, - that will also protect, consolidate - and correct existing customary systems?
5.Co
nclu
sion
s &
pol
icy
impl
icati
ons
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Thank you for listening
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Results objective 4: market access
• Traders’ possession of permits & informal taxes – 70 traders operate illegally
4.Re
sults
Prefer to rent permit (illegal) and pay informal taxes
If Perceived
TCs Bribe = No
permit +Rents >
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Estimated costs borne by farmer groups
4.Re
sults
Process assessed Case study group
Number of steps to compile files 10
Time to process file (days ) About 98
Amount of money to process file About 1.3 million FCFA (1$= 500FCFA)
Duration to monitor files in the capital city 4 years
Cost to monitor files 12, 130,000 FCFA
264.Re
sults
Rents Bribe 212
MillionFCFA
1.7% annual turn
over
Government
Economic operators
Police and Forestry
0% 20% 40% 60%
9%
37%
54%Partial conclusions• Permit system : characterised by high TCs encourage rent seeking and unofficial taxes (bribes)
• Decision not to comply is a rational choice by traders to overcome TCs
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Options to motivate compliance based on choice experiment Attributes Option 1 Option 2 Option 3 Option 4 NoneDecentralised/centralised simplified/complicated
Joint or individual
Transferability of permit
Duration of permit
1 year 3 years 1 year 3 years
Regeneration tax
20 FCFA 5 FCFA 10 FCFA 20 FCFA
Choose one □ □ □ □ □X
4.Re
sults
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Results from choice experiment
4.Re
sults
Attribute Change Implicit willingness to pay
Complicated to simplified 22.00
Single to joint 9.80
No transfer to traders based transfer 8.80
No transfer to government based transfer
6.80
Increase in duration of permit by one year
5.60
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General conclusions and policy implications
• Specific strategy/ program are needed to develop, guide and implement agroforestry strategies
• Subsequent policies, regulations/legislation should make the distinction between AFTP and NTFP e.g certificates of origin
• Customary rights to land needs to be protected e.g by simplifying access to land titles
• Reduce TCs e.g simplify access to NTFP permits
• Reduce rent seeking and unofficial taxes in the governance of permits
5.Co
nclu
sion
s &
pol
icy
impl
icati
ons
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Further research: getting the institutions right
• Producers level: – How do we design optimal and efficient formal
institutions and institutional arrangements to manage land and trees, that will also consolidate and correct existing customary systems?
• Traders level: – What are the most appropriate reforms to improve
the regulatory mechanisms governing permits and to reduce corruption and rent seeking
5.Co
nclu
sion
s &
pol
icy
impl
icati
ons
31
Thank you for listening
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