Organization
World Bank
Report Year
2013
1st MAR Year
2014
Accepted
Yes
Status
Active
Recommendation

Expand support for participatory forest management with help to level the playing field for community based forest enterprises by working with clients to improve regulations and procedures and integrate small scale informal forestry activities.
This can be supported with analytic work (with clear dissemination strategies), development policy lending, IFC investment and advisory services, and by the incorporation of regulatory issues in project indicators.

Recommendation Adoption
IEG Rating by Year: mar-rating-popup N S S S Management Rating by Year: mar-rating-mng-popup NT S H H
CComplete
HHigh
SSubstantial
MModerate
NNegligible
NANot Accepted
NRNot Rated
Findings Conclusions

Participatory Forest Management, when implemented effectively, has delivered livelihood enhancing benefits as well as positive environmental outcomes. But its potential is often hampered by the failure to devolve true authority to communities and by regulatory environments that often discriminate against small producers. Where this is the case, the benefits enjoyed by communities may be too limited to provide sufficient incentives to ensure sustainable forest management.

Original Management Response

Original Response: Agreed: Participatory forest management can be an efficient tool in sustainable forest management and improving rural livelihoods. It is not a panacea and much depends on the quality of the forest, access to markets and the investment climate.

The Bank will continue to support forest operations which incorporate strong participatory elements to them. With respect to regulatory complexity, this is neither a systemic nor a binding constraint for community-based forest enterprises. Rights of forest use and tenure are a far more significant constraint, and 'overregulation' is often only a symptom of more fundamental issues having to do with tenure.

The evidence from Bank operations shows that more secure rights of use and access improve forest management outcomes, and that when these have been resolved, community based forest enterprises have tremendous latitude for operating with great efficiency and effectiveness (for example, within the framework of the regulatory mechanisms introduced and managed by communities themselves.)

The Bank will continue its analytical work on the policy and business environment for forest close collaboration with the IFC.

Action Plans
Action 1
Action 1 Number:
2 A
Action 1 Title:
Prepare ‘good practice’ guidance note for supporting community based forest enterprises
Action 1 Plan:

WB Action 2A: Prepare ‘good practice’ guidance note for supporting community based forest enterprises and small and medium forest enterprises, including work on addressing regulatory constraints to SMFEs.

Indicator: Knowledge product delivered and disseminated.

Baseline: Basic guidance already outlined in the Forest Sourcebook (2008) and guidance for facilitators developed in PROFOR publication on Supporting Small Forest Enterprises: A Facilitators Guide. IFC FAST team has developed a handbook of good practices for firms working with smallholder farmers

Target: Detailed and user friendly operational guidance prepared for supporting community based forest enterprises and SMFEs that draws on concrete experiences in the field. Guidance note disseminated through activities targeting pipeline operations.

Timeline: FY15.

Action 2
Action 2 Number:
2 B
Action 2 Title:
Preparation of ESW on constraints and potential of community forestry for tackling REDD+
Action 2 Plan:

WB Action 2B: Preparation of ESW on constraints and potential of community forestry for tackling REDD+ which looks at non-economic and economic barriers to REDD+ schemes at the community level.

Indicator: Study completed and disseminated

Baseline: No prior systematic study looking at potential for community forestry in REDD+.

Target: Guidance for policy makers and project proponents to design and implement REDD+ interventions that involve and benefit communities. Dissemination targeting pipeline community-based REDD+ initiatives.

Timeline: FY14

Status: Completed

Action 3
Action 3 Number:
2 C
Action 3 Title:
Complete and disseminate ESW which synthesizes knowledge on mapping
Action 3 Plan:

WB Action 2C: Complete and disseminate ESW which synthesizes knowledge on mapping and effectively negotiating community rights on forest lands. Use guidance from ESW to inform pipeline operation.

Indicator: Findings from ESW used in Indonesia in conjunction with on-going activity.

Baseline: No prior effort in the Bank to synthesis good practice on mapping and legislative framework for use by forest dependent groups.

Target: Knowledge product on how to examine legislation, operational challenges and how to negotiate changes in legislative framework. Targeted use of this in an on-going operation.

Timeline: FY15

Action 4
Action 4 Number:
2 D
Action 4 Title:
Learning event involving practitioners on supporting community based forest enterprises and SMFEs
Action 4 Plan:

WB Action 2D: Learning event (or comparable training event, subject to modifications due to the Change process) involving practitioners on supporting community based forest enterprises and SMFEs

Indicator: Learning event held

Baseline: No prior SDN week event held that brings together practitioners.

Target: 30 technical specialists from the forest and NRM community of practice at the Bank participate in the event

Timeline: FY15

Action 5
Action 6
Action 7
Action 8
2017
IEG Update:

2A. Not achieved but Substantial progress. A programmatic guidance note was contracted out and will be finalized in FY18. Delayed because the Bank brought on TNC and FnM to develop the note.
2B. Achieved. PROFOR report: Community Forest Management and REDD+ and disseminated. However, only tangentially linked to recommendation.
2C. Achieved. The ESW/ASA was completed for LAC. Comprehensive analysis of Indonesia's land tenure system completed (internal working paper). This has feed into the "Indonesia: ONEMAP Project." Project is planned to be delivered to Board in FY18. This project proposes to include programs to support indigenous people's rights. In addition, for a Project "Indonesia: Strengthening Rights and Economies of Adat and Local Communities" has been approved. This project directly supports local communities with land mapping and land rights training.
2D. Not Achieved. A Programmatic TA was approved a year ago to prepare the SMFE webinar. The webinar has been contracted out and will be finalized in FY 18. The initial SMFE work has been featured at various BBL of the Forests, Landscapes and Ecosystems GSG.
Since only two out of the four actions were fully achieved the rating is substantial.

Management Update:

Action 2A: A Programmatic TA was approved a year ago to prepare the SMFE guidance. The guidance note has been contracted out and will be finalized in FY 18. Reason for delay - have brought on TNC and FnM to engage in the development of this note with GENDR. Additionally, a webinar series around this topic will be organized in FY18. The guidance will build on the toolkit prepared by PROFOR in 2012 http://www.profor.info/content/forest-connect-supporting-small-and-medi…. As part of the engagement of the private sector in productive forests PROFOR published in 2017 the policy brief "Harnessing the Potential of Private Sector" (http://www.profor.info/sites/profor.info/files/Productive%20forests%20b…) in which presents an analysis of the potential of harvested wood products and their role in promoting green growth, from a private sector perspective.
Action 2B: N/A
Action 2C: The ESW/ASA was completed for LAC. See reference attached. https://www.profor.info/content/securing-forest-tenure-rights-rural-dev…. Comprehensive analysis of Indonesia's land tenure system completed (internal working paper). This has feed into the "Indonesia: ONEMAP Project" a project to support the governments One MAP platform. Project is planned to be delivered to Board in FY18. This project proposes to include programs to support indigenous people's rights. In addition for a Project "Indonesia: Strengthening Rights and Economies of Adat and Local Communities" has been approved. This project directly supports local communities with land mapping and land rights training.
Action 2D: A Programmatic TA was approved a year ago to prepare the SMFE webinar. The webinar has been contracted out and will be finalized in FY 18. The initial SMFE work has been featured at various BBL of the Forests, Landscapes and Ecosystems GSG.

2016
IEG Update:

Forestry - Recommendation 256: Expand support for participatory forest management.
IEG has been in consultation with the Forest Team, after which point the rating associated with the Community Forest Management recommendation has been updated to Substantial, in line with last year's progress and rating. To fully implement the Action Plan, Management could report next year on the status of the "Detailed and user friendly operational guidance prepared for supporting community based forest enterprises and SMFEs that draws on concrete experiences in the field. And, guidance note disseminated through activities targeting pipeline operations" (See Action Step 2A). The ongoing work through the Forest and Landscape Restoration program, PROFOR's assessments of community based forest initiatives in Vietnam, Mexico and Mozambique, its market assessments on timber for local initiatives (Congo Basin) and new work with FAO on a new review on concession management, including transfer of rights to forest communities appear as very promising efforts in this regard. Next year, Management may want to describe how all of these lessons can be collated to provide a version of what was originally proposed in the Action Plan - on the Guidance Note. Recognizing that the Bank is operating under a new Forest Action Plan, and has engaged with partners through the above initiatives, the completion of this recommendation based on the work program - and on the collation of lessons learned through the partnership efforts - could be the basis of the discussion for next year.

Management Update:

The Forest Action Plan FY16&ndash 20 (FAP) which will guide forest-related interventions in the WBG for the next 5 years confirms the aim of the World Bank Group (WBG) to strengthen the role of forests in achieving the WBG goals of ending extreme poverty and increasing shared prosperity in a sustainable manner by 2030. The FAP seeks to support countries willing to fully embed forests in their development priorities, by focusing more deliberately on the positive contributions that forests make to poverty reduction, food security, economic development and climate action agenda. The FAP responds to recent forest ambitions reflected on in key documents, including the Sustainable Development Goals.
Sustainable socio-economic development is at the center of the FAP involving a variety of actors, including local communities and indigenous peoples groups, other CSOs, the private sector, government agencies, and state-owned enterprises. Sustainable forest management calls for enhancing community involvement in decision-making processes related to the use of forests, increasing investments in planted forests, working in partnership with the private sector to make their business models forest-smart, and strengthening forest governance to foster responsible investments and combat illegal logging. Some two billion hectares of lost or degraded forests and landscapes could be restored, yielding tremendous benefits in terms of economic opportunities, while sequestering a significant quantity of carbon from the atmosphere.
Clear ownership, access, and management rights over forests are vital for good governance and sustainable management of the resources. While most forests remain publicly owned, forest ownership by private actors, communities, and individuals has increased over the decades. A growing body of research also shows that the transfer of rights over forests (or forest use) to forest users creates effective incentives for improving forest conservation and management, with significant productivity and yield increases and with more equitable access to and ownership of forest resources. Forest dwellers can and will sustain or sustainably enhance forest productivity if they have long-term security for their access and user rights, a clear tenure situation, and access to affordable credit lines. Access to affordable finance allows forest dwellers to be engaged at different stages of the value chain for instance, by adding value to timber and non-timber forest resources in the form of semi-finished or finished products that can be marketed at a higher price.
Interventions described under Focus Areas 1 and 2 can only yield full and long-lasting impacts on population welfare if rights of use and access to forest and trees are clear and secured. Uncertainties in these areas pose a significant constraint to their ability to manage these resources and to be involved in the value chain. Despite a growing recognition of the role women play in forest-related activities, they still face inequalities in terms of rights over forest resources, representativeness in relevant decision-making bodies, and access to credit lines. Empowering women in the forestry sector can create significant opportunities and generates important spill-over for households and communities.
A substantial share of the Bank's forest-related portfolio over the last decade has supported forest land tenure reforms, including significant shifts toward community-based forestland. Building on good experiences, the World Bank will work with clients willing to strengthen and expand local rights of use and access over forest resources, with a particular focus on indigenous groups. It will help them improve land tenure laws and regulations and modernize land administration systems. The focus on decentralized forest management and on community-based and participatory forest management.

The WBG Management team has seen significant progress in the application of community based forests enterprise in many Regions. In fact, there are now 14 countries with Dedicated Grant Mechanisms (DGM) for Indigenous People Forests Activities Community Forestry components are presents in most of WB forest projects, for example, Liberia, Mexico, Peru, Ghana, Ivory Coast, Mozambique, Laos and Indonesia. Two international workshops were done for Indigenous People and CSO, the last one just this months. This workshop was very highly attended by World Bank OPCS VP and Acting Senior Director ENR and Director Climate Change CCSA. In addition, thanks to the partnership on Forest and Landscape Restoration, now various team are reaching out to FAO Forest and Farm Facility to give TA to IP and Forest Dependent Communities on community based forests enterprises. PROFOR has supported financial and technical assessments of community based forest initiatives in Vietnam, Mexico and Mozambique. PROFOR also supported a IP tenure assessment in Central American countries, financed a number of market assessments on timber for local initiatives (Congo Basin). PROFOR is also working with FAO on a new review on concession management, including transfer of rights to forest communities.

2015
IEG Update:

The preparation of a good practice guidance note for supporting community based forest enterprises has been launched and technical specialists identified. Expected delivery of final products by the end of Q3 FY16. The PROFOR report on Community Forest Management and REDD+ was published in 2014. The MAR does not provide evidence that a Guidance note has been disseminated, per the MAR targets, and that this note has provided opportunities for pipeline operations. More information about the use of the 2014 Report is needed to validate the achievement of the target. The data provided by the MAR on Action 2C is not in line with the MAR Commitment. Action 2C pledged to complete and disseminate ESW which synthesizes knowledge on mapping and effectively negotiating community rights on forest lands. Then, guidance from the ESW was to be used to inform pipeline operations. The findings from Indonesia were to be used in conjunction with this activity. Excellent that training events were held in February 2014 for 40 people, that they were oversubscribed, and received very positive feedback. Can the MAR process point to any examples of uptake?

Due to additional information provided by Management, rating has been set to Substantial

Management Update:

WB Action 2A: Ongoing - preparation of documents on supporting SMEs and community based enterprises has been launched and technical specialists identified. Expected delivery of final products by the end of Q3 FY16. The guidance will be drawing on the work that PROFOR and IFC has already financed is underway WB Action 2B: Completed - PROFOR report "Community Forest Management and REDD+" published in June 2014 WB Action 2C: Completed/Ongoing - work in Indonesia completed and publication is being finalized - findings being integrated into the planning process for the landscape strategy WB Action 2D: Completed - two training events held during Forum 2014 weeks in February 2014 for total of 40 people (25 and 15 participants respectively). The events were oversubscribed and received very positive feedback.

Additional Information from Management:
We have fully completed 2 out of 4 (50%) actions in this category and one is ongoing and will be completed Q3 this FY. One action is Completed/ongoing as it included developing a knowledge product which has its field work completed and publication being finalized. In summary, we have fully completed 50% of activities and the remaining ones are in their final stages. By IEG guidance this is ranked as Substantial (&gt 50% completion).

- WB Action 2B:

The MAR target was "Guidance for policy makers and project proponents to design and implement REDD+ interventions that involve and benefit communities. Dissemination targeting pipeline community-based REDD+ initiatives". As mentioned earlier, PROFOR report "Community Forest Management and REDD+" published in June 2014. It is true that we did not have information on dissemination in our original contribution. Following dissemination activities have taken place:

- posted to WBG Open Knowledge Repository: https://openknowledge.worldbank.org/handle/10986/18964
- posted to PROFOR.info: http://www.profor.info/node/2059
- posted to IFRI: http://www.ifriresearch.net/2015/04/27/community-forest-management-and-…
- posted to academia.edu: http://www.academia.edu/12410349/Community_forest_management_and_REDD
- dissemination via PROFOR social media (Twitter and Facebook) (currently 3,177 followers on Twitter, the number was lower in August 2014. However, the exact number was not recorded).
- the report has also been disseminated through FCPF Knowledge Management and Communications contacts
- report will be presented in the Global Landscape Forum during CoP 21 in Paris, France and will be included in a brief of climate-related PROFOR-funded activities.

While dissemination is continuously ongoing for this knowledge product - as is the case for all PROFOR products - we consider the MAR target achieved and the action completed.

WB Action 2C

The MAR target is "Guidance for policy makers and project proponents to design and implement REDD+ interventions that involve and benefit communities. Dissemination targeting pipeline community-based REDD+ initiatives." As the Action is still ongoing, it is premature for IEG to comment on the implementation of the Action and even less its compliance with the MAR.

- WB Action 2D

The MAR indicator is "Learning event held" and target "30 technical specialists from the forest and NRM community of practice at the Bank participate in the event". This has been achieved. While uptake of training and its impact on operations obviously is important and IEG is right in pointing that out, it was not agreed as a target to be monitored. Therefore uptake of individual training events is not being followed systematically nor reported in MAR. As the jointly agreed target has been met by the training provided, we consider the MAR target achieved and the action completed.

In summary, two of the four Actions have been completed and others have done good progress. Therefore in our view the level of completion is well above 50% and progress should thus be ranked as substantial.

2014
IEG Update:

IEG has rated the Level of Adoption of the PFM Related Activities (including support for SMFEs and engaging the informal sector) as Neglible and considers this recommendation to be Active. The Toolkits for supporting SMEs and Community Based Enterprises will be launched in FY15. Two training events are reported to have been held but their content is unclear and the impact that the training has had on operations is also not reported here. Other items reported are one PROFOR report on COmmunity Forest Management and REDD in Indonesia and fieldwork in Indonesia, but here again it is unclear what the field work or the related publication refers to. There are no references to Bank projects in the response - that include new or renewed attention to the constraints facing SMFEs and/or that address the missed opportunities identified in the IEG Forest Evaluation of not more proactively engaging the informal sector.

Management Update:

WB Action 2A: Ongoing

- preparation of documents on supporting SMEs and community based enterprises will be launched in FY 15 and delivered by the end of q2 fy16

WB Action 2B: Completed

- PROFOR report “Community Forest Management and REDD+” published in June 2014
WB Action 2C: Ongoing

- field work in Indonesia completed and publication being finalized by July 2015
WB Action 2D: Completed

- two training events held during Forum 2014 weeks in February 2014 for total of 40 people (25 and 15 participants respectively). The events were oversubscribed and received very positive feedback.