Perspective Vision for Forest Sector Cluster Programs Towards Sustainable Socio-Economic Development in Eastern Russia and Northern China

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Perspective Vision

for Forest Sector Cluster

Programs Towards

Sustainable

Socio-Economic

Development

in Eastern Russia and

Northern China

Andrey Kushlin

Senior Forestry Specialist

World Bank

World Bank Group

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35 2,1 33 Canada Finland USA Russia

Russia

’

s Forests

82 3,1 Sweden China Brazil 81 13 India 4,6

billion m3

23% of the World’s growing stock

Forest Products Trade between Russia and China: Encouraging Responsible Enterprise Informal Consultations convened by Forest Trends – Burduguz, Lake Baikal, August 17-18, 2006

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223 Canada 541 USA 180 China 290 Brazil 184 Russia 64 Finland 76 Sweden

million m3/yr

6% of the World’s harvesting

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Russia’s Forest Resources Availability

and Processing Capacity

– Economically Accessible Resource (

250 million m3/yr

)

– Harvesting (

130 million m3/yr

)

0,5 0,3 South Center 19 10 Volga 36 20 Urals 37 10 Northwest 59 44 Far East 33 14 Siberia 64 32 38% 13% 2% 14% 5% 25% 2%

– Processing Capacity (%)

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Russia’s Regional Forest Diversity:

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Russia’s Regional Diversity:

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Lease < 5 yrs. Lease 5-10 yrs. Lease 10-20 yrs. Lease > 10 yrs.

Forest Lease Dynamics in Russia

2005

2004

2003

6% 36% 58% 8% 46% 46% 7% 42% 51%

Objectives:

Promotion of integrated companies

Priority to investments and forest users with high degree of

wood processing

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Russia’s Log Exports

16.9 _15.4

_14.9

_14.5

19.9 _22.1

26.6

34.0 2002

2003

2004

2005

High Value Wood

Low Value Wood

million m3/yr

36,8

37,5

41,5

всего

48,7

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The Top Five Trade Partners Based on The Trade Volume Malaysia 3.07% Indonesia 2.44% United States 11.30% Thailand 7.19% United States 31.42% Japan 18.26% Hongkong China 11.00% South Korea 4.05% United Kingdom 3.15% China Russia 10.72%

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The Tr ade Vol ume of f or est pr oduct s i n Chi na f r om 1994- 2004 0. 00 2. 00 4. 00 6. 00 8. 00 10. 00 12. 00 14. 00 16. 00 18. 00 20. 00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year Vo lu me (b illio m do lla r)

expor t vol ume i mpor t vol ume

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The Tr end of Log I mpor t i n Chi na f r om 1995- 2004 0 5000000 10000000 15000000 20000000 25000000 30000000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year Qu ant it y: Cu bi c Met er

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The Tr end of Sawnwood I mpor t and Expor t i n Chi na f r om 1995- 2004 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year Quant it y( Cu bi c Met er ) Expor t I mpor t

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Vision for Forest Sector Cluster Programs in Eastern Russia and Northern China

·

02 • The two governments are already

implementing targeted measures to enhance the

role of the forest sector in national and regional

socioeconomic development programs, and

attract long-term investment in the production

of competitive high value-added forest products.

• At the same time, Russian and Chinese

forests, due to their natural characteristics,

perform globally significant environmental

functions relating to biodiversity conservation

and climate change prevention.

• Therefore, Russia and China have unique

objective prerequisites for establishing a

mutually beneficial strategic partnership to

promote sustainable forest management and an

accelerated forest sector development.

Partnership to promote SFM and forest sector development:

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Vision for Forest Sector Cluster Programs in Eastern Russia and Northern China

·

02 (1) The conservation and restoration of the

environmental and natural resource

capacity of unique forest, forest-tundra

and forest-steppe landscapes in

North-East Asia as an essential part of the global

ecosystem

(2) The establishment and sustainable

development of a diversified forest

“cluster” in the economy of Asian Russia

and Northern China that would produce

highly competitive products for global

and domestic markets on mutually

beneficial terms and conditions.

Partnership to promote SFM and forest sector development:

= Long-Term (10-15 years) Objectives =

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Vision for Forest Sector Cluster Programs in Eastern Russia and Northern China

·

02

1. Harmonization of the national systems of

nature protection and environmental

(forest, water, etc.) legislation, and an

adequate development of the

monitoring/law enforcement capacity at the

central (federal), provincial (regional) and

local levels;

2. Coordination and bilateral development of

administrative and economic (inter alia,

customs and tariff) arrangements that

would encourage mutually beneficial

long-term investment in the forest sector in the

adjacent territories, including low-grade

timber utilization programs;

Partnership to promote SFM and forest sector development:

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Vision for Forest Sector Cluster Programs in Eastern Russia and Northern China

·

02

1.

2.

3. Development and promotion of agreed

mutually beneficial positions in

international forest negotiation processes;

4. Design and introduction of agreed national

systems of voluntary forest certification and

mechanisms to monitor the legitimacy of

timber sources that would meet

internationally accepted standards; and

5. Development and efficient management of

transboundary networks of specially

protected nature areas (SPNA).

Partnership to promote SFM and forest sector development:

= Mid-Term (3-5 years) Programs, cont’d =

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Vision for Forest Sector Cluster Programs in Eastern Russia and Northern China

·

02

1. Continue and expand work of the bilateral

working group on forest sector cooperation

consisting of the representatives of central

and territorial forest management,

environmental supervision, and foreign

trade regulation authorities, as well as

forest user organizations.

2. Ensure coordinated involvement in the

national-level implementation of the Forest

Law Enforcement and Governance (FLEG)

Process for Northern Eurasia.

3. Exchange groups of specialists (regional

workshops and short-term practical

training) on issues relating to efficient

arrangements for comprehensive forest

Partnership to promote SFM and forest sector development:

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THANK YOU FOR YOUR ATTENTION!

Additional information about World Bank programs:

• www.worldbank.org

• www.worldbank.org/forests

• [email protected]