PART II SELECTED CURRENT ISSUES IN THE FOREST SECTOR 101 Forest research in New Zealand Some trends in international development assistance for agriculture and agricultural research and development "At first glance, everything seems rosy in re- Although the European Community has increased overall de- arch labs. After nearly ten years of operat- relopment assistance, agricultures share and support to agri- ing under a boldly experimental commer- cultural research and development havedeclined. Inthe 1980s, cialmodel, scientists are focusing onindustry agriculture accounted for 12 percent of European Community needs like never before and success stories support, but this figuredeclined to 4 percent between 1996 and abound. Lastyear Crown ResearchInstitutes, 1998. ncluding Forest Research, boasted record World Bank support for the rural sector has been erratic during the past two decades. However, after adjustment for inflation, you'll see a different pictur the trend has been downward. The share of agriculture in total lending has declined from an average of 26 percent in the first half of the 1980s to 10 percent in 2000 The amount of funding that the United States Agency for Inter- research in the least-developed countries declined by 75 per- cent between the mid-1980s and 1996 forest research. Foreign investment is concentrated in relatively well-off developing Source: Pardey and Beintema, 2001 countries and newly industrialized countries. In addition, most of it flows to activities that have short pay-back periods and high returns Although foreign investment results in some technology transfer in forestry, this is mostly related to logging, forest plantations and wood processing. Seldom does it increase indigenous Privatization of forest research in Europe: some findings capacity in science and technology, particularly in areas relevant to the needs of local communities "Both economic theory and our empirical findings give strong NARROWING OPTIONS support for the continuing dominating role of public funding Imbalances in ongoing research lessen options, most forestry research. We have not found support from theory or thus increasing vulnerability to economic and practice that decreased public funding of most forestry research ivironmental change Low investment, coupled would be compensated by increased private funding in the respec- with changes in institutional arrangements, is tive fields of research. In addition, if public funding of forestry bringing about a significant shift in research research is cut, it means that research orientation is to an increasing priorities, at a time when a broader framework degree controlled by the markets, which for forestry research are required to address the complexities of very narrow Inevitably such privatization would shift research ustainable forest management priorities towards the interests of the private bodies capable of Integrating approaches to science and Hellstrom, Palo and Solberg, 1998 While the importance of integrated research is Is se flected in the101 SECTOR FOREST THE IN ISSUES CURRENT SELECTED II PART is investment Foreign. research forest developing off-well relatively in concentrated In. countries industrialized newly and countries have that activities to flows it of most, addition .returns high and periods back-pay short some in results investment foreign Although mostly is this, forestry in transfer technology wood and plantations forest, logging to related indigenous increase it does Seldom. processing particularly, technology and science in capacity local of needs the to relevant areas in .communities OPTIONS NARROWING ,options lessen research ongoing in Imbalances and economic to vulnerability increasing thus coupled, investment Low. change environmental is, arrangements institutional in changes with research in shift significant a about bringing is framework broader a when time a at, priorities of complexities the address to required .management forest sustainable and science to approaches Integrating technology is research integrated of importance the While the in reflected seldom is it, recognized industry on focusing are scientists, model cial￾commer experimental boldly a under ing￾operat of years ten nearly After. labs search￾re in rosy seems everything, glance first At“ stories success and before never like needs ,Institutes Research Crown year Last. abound record boasted, Research Forest including annual upbeat the behind look But. profits “.picture different a see ll’you and reports .2002, Richardson ,1980s the In. declined have development and research cultural￾agri to support and share s’agriculture, assistance velopment￾de overall increased has Community European the Although• Community European of percent 12 for accounted agriculture and 1996 between percent 4 to declined figure this but, support .1998 during erratic been has sector rural the for support Bank World• ,inflation for adjustment after, However. decades two past the total in agriculture of share The. downward been has trend the first the in percent 26 of average an from declined has lending .2000 in percent 10 to 1980s the of half agricultural towards directed) USAID (Development national￾Inter for Agency States United the that funding of amount The• .1996 and 1980s-mid the between cent￾per 75 by declined countries developed-least the in research .2001, Beintema and Pardey: Source strong give findings empirical our and theory economic Both“ in funding public of role dominating continuing the for support or theory from support found not have We. research forestry most research forestry most of funding public decreased that practice forestry of funding public if, addition In. research of fields tive￾respec the in funding private increased by compensated be would increasing an to is orientation research that means it, cut is research are research forestry for which, markets the by controlled degree research shift would privatization such Inevitably. narrow very of capable bodies private the of interests the towards priorities “.research forestry funding .1998, Solberg and Palo, Hellström assistance development international in trends Some Zealand New in research Forest development and research agricultural and agriculture for findings some: Europe in research forest of Privatization