Illegal forest activities

Illegal forest activities include all illegal acts related to forest ecosystems, forest industries, and timber and non-timber forest products. They include acts related to the establishment of rights to the land and corrupt activities used to acquire forest concessions.

The World Bank estimates that loss of revenue caused by illegal forest activities throughout the world is worth US$5 billion annualy. Illegal forest activities occur in tropical, temperate and boreal forests.

The scope of the problem

Illegal forest activities abound in many countries, for example:

• In Indonesia, as much as 50 million cubic meters of timber are estimated to be illegally cut-down each year.
• At least one-fifth of Russia's annual timber harvest is taken illegally, and illegal harvesting may account for as much as 50 percent of the total in east Asia.
• In Cambodia in 1997, the volume of illegally harvested logs was ten times that of the legal harvest.
• In Cameroon and Mozambique about half of the total annual timber harvest is illegal.
• In Brazil, an estimated 80 percent of timber extracted each year in the Amazon is removed illegally.

The causes behind the problem

Major causes of illegal forest activity include corruption, unclear legislation, legislation discriminating against livelihood uses of the forest, and weak law enforcement.

In many instances there is simply more profit to be made from illegal forest activity. This is often exacerbated by ineffective law enforcement. In such circumstances, a cycle of corruption is fostered that allows powerful and rich individuals to further their own power and position by continuing their illegal activities. Local people also engage in illegal activities. This may occur when legislation discriminates against traditional uses of forests, such as the collection of non-timber forest products, or leaves them with no choice but to derive an income by illegally harvesting timber.

The effects?

Illegal forest activities:

• Reduce the income of local communities from legal and improved forest management and thereby give rise to further illegal activity.
• Create a cycle of bad governance, where corrupt politicians, government officials, and private individuals support bad governance in order to maintain their profits.
• Contribute to extensive deforestation and the destruction of biological diversity.
• Increase the risk of forest fires and distort forest product markets.

What can be done?

It is unlikely the complex chain of illegal activities that often exists in forest environments will be broken unless the rewards from illegal activities are reduced, and the risk of detection is increased.

Forest governance needs to be improved by increasing transparency in decision-making, reforming legislation, reducing broad discretionary powers held by government officers and expanding the use of market-based instruments. Targeting one aspect of the chain, particularly the poor and desperate, will not break the complex cycle that links illegal forest activity with national and international market demand.

Pressure also needs to be applied to the purchasers of illegal forest products. The world's largest industrial countries buy about three quarters of the world's timber imports. Most of this material is the end product of illegal tree felling. Importing countries need to introduce legislation favoring the importation of timber products certified from legal timber gathering operations.

CIFOR’s role

CIFOR is undertaking a number of initiatives aimed at reducing illegal forest activities.

A recent CIFOR review assessed the global extent of illegal forest activities, the relationship between sustainable forest management and illegal forest activities, and policy options available to exporting and importing countries. CIFOR is undertaking a global review and country focused studies into the links between illegal forest activities, law enforcement and livelihoods.

CIFOR is currently assessing Chinese timber import trends, import financial flows driving timber markets, regulatory frameworks affecting finance and the possible environmental and livelihood impacts of illegal activities. It is also supporting The Nature Conservancy-WWF Alliance to Combat Illegal Logging in Indonesia through the development of a monitoring framework and the conduct of annual impact assessments.

CIFOR is also producing a new series of publications on Forest Law Enforcement, Governance, and Trade that will promote increased understanding of the causes and solutions to illegal forest activities.