112 STATE OF THE WORLDS FORESTS 2003 In contrast, nearly all expenditure supported products, non-wood forest products by international financing was spent on (NWFPs)and forest services investment(73 percent in 1999), mostly or Forest charges are reviewed every three to relatively small and specific areas four years on average, but four countries Only five countries reported investment had not reviewed their charges since 1990 programmes supported by domestic Since 1990, charges had increased by more financing of more than USSI million per than the rate of inflation in only four of the year in the forest sector. Given that public expenditure covers a wide Governments set most forest charges by range of activities in forestry, most countries using market-based formulae or by could not easily identify how much was consulting with interested parties. When devoted to sustainable forest management. Only market-based methods have been used community forestry and protected area forest charges have tended to increase. management were distinguished. The most consultation, often with the forest industry ommonly reported areas for investment were has tended to restrict increases projects related to infrastructure and to Of the 22 countries that provided adequate reforestation for community forestry, data on the total revenue collected 17 had commercial forestry and desertification increased it since 1990, although only 13 control had done so by more than the rate of inflation. Given that forest charges generally Revenue collection fell over the period, most countries have Where forests are owned by the State, it has become more efficient in revenue collection been suggested that one way to increase public (O.L. Ajewole, in preparation) expenditure is to increase forest charges and The average revenue collected per cubic metre revenue collection However, a number of was calculated by dividing total revenue studies have shown that the forest revenue collected by total production Using total collected is low in many countries(FAO, 1983; roundwood production, the average revenue Repetto and Gillis, 1988 Grut, Gray and egli, collected in Africa in 1999 was USS019 per cubic 91). Low forest revenue not only has a metre. However, excluding woodfuel negative impact on total government revenue production, the figure is US$2. 42 per cubic and expenditure, but also sends incorrect pricemetre signals to the market about the value of forests These results show little improvement in this and wood. Such messages are damaging to area Forest charges remain low, complicated sustainable forest management in that low and difficult to collect Countries suggested a prices can result in overharvesting and number of reasons for this, including staff undervaluing of the resource, both of which shortages, poorly motivated staff, infrequent ontribute to deforestation and forest revision of charges and poor governance degradation. However, in some cases, low revenue collection Analysis of the data from Africa reveals the is a deliberate policy of governments that want ollowing to subsidize wood consumption-in the form of Forest charges are complicated and woodfuel, for example -for social reasons duplicated in many countries. If general taxes and levies are included, it is quite NEW FISCAL ARRANGEMENTS common for producers to pay more than ten Given the limitations of public finances, many different taxes and charges African countries are attempting ne Most countries levy charges on several types innovative ways of drawing or retaining of forest output from among, for exan finance. The most notable of these are a move woodfuel, industrial roundwood, processed towards greater decentralization and financial2003 FORESTS S’WORLD THE OF STATE 112 supported expenditure all nearly, contrast In• on spent was financing international by on mostly), 1999 in percent 73 (investment .areas specific and small relatively investment reported countries five Only• domestic by supported programmes per million 1$US than more of financing .sector forest the in year wide a covers expenditure public that Given countries most, forestry in activities of range was much how identify easily not could Only. management forest sustainable to devoted area protected and forestry community most The. distinguished were management were investment for areas reported commonly to and infrastructure to related projects ,forestry community for reforestation desertification and forestry commercial .control collection Revenue has it, State the by owned are forests Where public increase to way one that suggested been and charges forest increase to is expenditure of number a, However. collection revenue revenue forest the that shown have studies ;1983, FAO (countries many in low is collected ,Egli and Gray, Grut; 1988, Gillis and Repetto a has only not revenue forest Low). 1991 revenue government total on impact negative price incorrect sends also but, expenditure and forests of value the about market the to signals to damaging are messages Such. wood and low that in management forest sustainable and overharvesting in result can prices which of both, resource the of undervaluing forest and deforestation to contribute .degradation the reveals Africa from data the of Analysis .following and complicated are charges Forest• general If. countries many in duplicated quite is it, included are levies and taxes ten than more pay to producers for common .charges and taxes different types several on charges levy countries Most• ,example for, among from output forest of processed, roundwood industrial, woodfuel products forest wood-non, products .services forest and) NWFPs( to three every reviewed are charges Forest• countries four but, average on years four .1990 since charges their reviewed not had more by increased had charges, 1990 Since the of four only in inflation of rate the than .studied countries by charges forest most set Governments• by or formulae based-market using When. parties interested with consulting ,used been have methods based-market .increase to tended have charges forest ,industry forest the with often, Consultation .increases restrict to tended has adequate provided that countries 22 the Of• had 17, collected revenue total the on data 13 only although, 1990 since it increased of rate the than more by so done had generally charges forest that Given. inflation have countries most, period the over fell collection revenue in efficient more become .(preparation in, Ajewole. I.O( metre cubic per collected revenue average The revenue total dividing by calculated was total Using. production total by collected revenue average the, production roundwood cubic per 19.0$US was 1999 in Africa in collected woodfuel excluding, However. metre cubic per 42.2$US is figure the, production .metre this in improvement little show results These complicated, low remain charges Forest. area a suggested Countries. collect to difficult and staff including, this for reasons of number infrequent, staff motivated poorly, shortages .governance poor and charges of revision collection revenue low, cases some in, However want that governments of policy deliberate a is of form the in – consumption wood subsidize to .reasons social for – example for, woodfuel ARRANGEMENTS FISCAL NEW many, finances public of limitations the Given and new attempting are countries African retaining or drawing of ways innovative move a are these of notable most The. finance financial and decentralization greater towards