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You are here: Home1 / Legality in the forest sector: New insights into obstacles and incentives...

Legality in the forest sector: New insights into obstacles and incentives for MSME formalisation

3 August 2021

Worldwide, at least 41 million people work in the informal forest sector – more than three times the 12.5 million employed in formal forest sector related businesses. 

In the informal forest sector, micro, small and medium-sized enterprises (MSMEs) are often characterised as “illegal”. This is the case when their modes of production, sources of raw material or legal status do not conform to their country’s regulatory requirements. 

In a new joint report, Promoting legality within the private forest sector: obstacles and incentives to formalization, the FAO-EU FLEGT Programme and the European Forest Institute (EFI) make a case for acknowledging the complex circumstances of forest-sector MSMEs, particularly in countries where requirements for legality compliance and achieving formal status are unclear.

If MSMEs do opt to formalise their business, the authors argue, there should be incentives and support to ensure that they benefit from formal status. This includes business development and credit, access to markets, and increased ability to participate in legal and sustainable supply chains. 

Formalisation will not always be desirable or practical for all forest sector MSMEs, the authors acknowledge. Where the rule of law and / or law enforcement is weak, policy and legal contexts are unlikely to be conducive to these enterprises entering the formal forest sector. 

The report builds on the experiences of the EFI and the FAO-EU FLEGT Programme, whose programmatic work has focused on helping MSMEs to produce and process legal timber for integration into legal and sustainable value chains.

Read the report:

  • Promoting legality within the private forest sector: obstacles and incentives to formalization

Tags: employment, MSME, timber legality
https://forestsmallholders.org/wp-content/uploads/2022/04/cameroon-fao-arielle-nkodo.jpg 628 1200 Forest Smallholders https://forestsmallholders.org/wp-content/uploads/2022/04/ForestSmallholders_WebLogo_Tagline_3lines-12.svg Forest Smallholders2021-08-03 14:45:002022-04-18 09:00:16Legality in the forest sector: New insights into obstacles and incentives for MSME formalisation
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  • Legality in the forest sector: New insights into obstacles and incentives for MSME formalisation3 August 2021 - 2:45 pm

    In a new joint report, the FAO-EU FLEGT Programme and the European Forest Institute (EFI) make a case for acknowledging the complex circumstances of forest-sector MSMEs, particularly in countries where requirements for legality compliance and achieving formal status are unclear.

  • MSMEs important partner to improve forest governance and reducing deforestation and forest degradation23 July 2021 - 8:10 am

    To better understand strategies to support MSMEs towards goals, the FAO-EU Forest Law Enforcement, Governance and Trade (FLEGT) Programme and the European Forest Institute (EFI) hosted a webinar entitled ‘How has supporting MSMEs to operate legally and sustainably improved forest governance and livelihoods?’.

  • Webinar to explore how support to MSMEs improves forest governance and livelihoods13 July 2021 - 8:18 am

    MSMEs play a critical role in meeting the growing demand for timber products worldwide. In an upcoming webinar, the FAO-EU FLEGT Programme and the European Forest Institute (EFI) will host a discussion on how support to micro, small and medium enterprises (MSMEs) can improve forest governance and livelihoods.

About the Forest Smallholders Project

Since 2016, the European Forest Institute (EFI) has been supporting wood-based micro, small and medium enterprises (MSMEs) in four Mekong countries to operate legally and sustainably. Under its Forest Smallholders Project, EFI has been testing solutions to MSMEs’ key challenges in pilot projects. Lessons learnt from these pilots are documented and disseminated nationally, regionally and internationally. Through its support to MSMEs, the Project promotes gender equality and women’s economic empowerment in the forest sector.

Disclaimer

This website has been produced with support from the Swedish International Development Cooperation Agency. The contents of this website are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of funding organisations.

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Except where otherwise noted, content on this site is licensed under Creative Commons BY-NC-ND 4.0. Credit information: European Forest Institute, www.efi.int
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