UNDPKH_NHDR_ publication

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 36

Figure 1.14.

Forest cover in Cambodia is still high, and the rate of decline is slowing

Source: UNDP Human Development Report Office calculations based on data on forest and total land area from FAO 2018.

This does not mean that natural resource outcomes. This is especially true when taking
management should be simply focused on a longer-term view and accounting for all
ensuring the preservation of traditional externalities.56
subsistence livelihoods in forested areas, and
somehow arrest their development. Rather, Finding evidence to make these connections
viable strategies should include managing in Cambodia is statistically difficult. Data
structural change in the economy, alongside are limited in scope and period, and human
sustaining the environment and delivering a development metrics are potentially too
model of development able to promote resilience narrow to capture the full contribution
over the long run. Moreover, more productive made to human development more broadly.
local economies could build on the effective use Nevertheless, quantitative methods can help
of forests as a modern resource to drive higher explore the connections, including through
value-added activities ranging from commercial using provincial forest cover data over a 10-year
forestry to high-end furniture to eco-tourism. period from 2005 and the HDI data provided
above. At the subnational level, as Figure 1.15
The core argument of UNDP’s global Human shows, while some provinces have seen major
Development Report in 2011 was that while losses in forests, others have experienced little
there are trade-offs between economic and change. The largest reductions have taken place
environmental objectives, these are not in the least forested areas, such as Kep and Svey
fundamental and complementarities exist. The Rieng. In many heavily forested areas, such
challenge therefore, is to manage the former as Koh Kong, Mondulkiri and Ratanakiri,
and maximize the latter, securing win-win coverage remains largely intact.

37 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Figure 1.15.

Patterns of forest loses vary: the most forested areas often see smaller declines

Forest Cover (FC)

2010 - 15
Forest Area (thousand hectares)

Source: Royal Government of Cambodia 2018; also see Appendix B.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 38

Comparing forest cover and HDI data with First, for lagging areas, forests matter for human Forests matter for human
basic correlation analysis, as reported in Table development. They are a key natural resource development, they are a key
1.1, shows that highly forested areas tend to have that local people currently rely on, and have natural resource that local
lower levels of HDI, with relatively high negative relied on for generations, for basic needs and people have relied on for
correlation coefficients (Product Moment or livelihoods. While this may change over time, generations for basic needs
Spearman’s Rank, and regardless of whether as the economy evolves, and new opportunities and livelihoods
forest cover is measured in absolute or percentage arise, natural resources will remain core to these
terms).57 Nevertheless, there is some variation areas’ comparative advantages, and should
between measures and a decline in the strength therefore be managed for developmental gains.
of the correlation in 2015.
Second, while it is clear that the strength of this
This is not a causal relationship per se. It correlation has declined over time, as lagging
simply reflects the reality that forested areas (and hence forested) areas have caught up with
are often also the most remote and poorest, other areas in Cambodia (again Table 1.1), much
and by extension, their peripheral location potential remains for further catch-up. Given the
and lower level of infrastructure drives their size and populations of these areas, this dynamic
underdevelopment. But it does suggest has driven national improvements in HDI.
that forest cover is important for human Efficient management of these resources is likely
development and that change is underway. Two to be central therefore to Cambodia’s overall
findings arise from these data. developmental performance.

Table 1.1.

Forest cover correlates negatively with human development

HDI/forest cover in hectares 2005 2010 2015
Correlation coefficient
Rank correlation coefficient -0.6834 -0.6897 -0.6174
HDI/forest cover as percentage of area -0.5676 -0.5672 -0.5808
Correlation coefficient
Rank correlation coefficient -0.6558 -0.6829 -0.5429
Source: Authors’ calculations. -0.6842 -0.6977 -0.4261

Limited data prevent a prediction about the results were far from compelling, suggesting
possible long-term contributions to human only a very tentative connection over time.58
development through improved resilience. This underlines the need for further research
While some basic regression analysis using and for caution in claiming causal connections.
change variables was undertaken with As always, correlation is not proof of causation.
provincial forest cover and HDI data, the

39 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Conclusions: Building on gains to accelerate progress

Improvement in the HDI has Human development in Cambodia has regions and most clearly the capital city, enjoy
consistently ranked in the progressed rapidly over the last two to three higher levels of human development, while
global top 10, human decades. The national rate of improvement in peripheral areas do not fare as well. Although
development in Cambodia the HDI has consistently ranked in the global there has been convergence, disparities
still lags behind its top 10. But the level of human development in remain. However, there has been significant
neighbours. Acceleration Cambodia still lags behind that of its neighbours, change in how human development gains
is needed if Cambodia is to and acceleration is needed if it is to catch up and are distributed across provinces. A three-
realize its potential realize its potential. Key to strong performance group pattern, with Phnom Penh as a high
has been steady progress on income, and performer, a cluster of provinces around
Given the sheer size and exceptional gains in life expectancy. On the latter average performance and a group of remote
scale of Cambodia’s forests, component of human development, Cambodia lagging areas, has transitioned into two
has overtaken several comparable countries. groups, with the lagging areas absorbed into
it is clear that they will Problematically, going forward, it will begin to the average performers. Underpinning this
continue to play a vital role reach ceiling levels of longevity, and diminishing achievement has been remarkable progress
returns may set in. This underscores the need in life expectancy and years of schooling in
in regulating ecosystems to address weaker components of human provinces like Mondulkiri, Ratanakiri and
and the climate, and in development, specifically education, which may Prey Vihear.
supporting the material also drive gains in the income component and
mitigate diminishing returns via longer term Finally, in line with established connections
needs of local communities improvements in productivity. between natural resource stocks and
development, evidence shows that forest
Trends in human development measures of management in Cambodia is an important
inequality have been very positive, but again consideration for lagging and poorer provinces
Cambodia still lags neighbouring countries. where forest cover is significant. Given the
Efforts are needed to ensure outcomes match high populations of these areas and their
strong performance on income inequality, where potential for further catch-up, human
Cambodia’s Gini coefficient is one of the lowest development levels overall will depend on how
in the comparator group. All sections of society forest resources are leveraged to deliver wide
need to benefit from the expansion of human socioeconomic development.
development. This depends greatly on improved
public service provision, specifically access to It has not been possible to provide empirical
decent quality schooling and health care, but evidence to demonstrate the long-term
additionally, comprehensive social protection and human development gains accruing from
improved public infrastructure are important. A improved resilience as a result of better
similar case can be made for gender equality and natural resources management. Yet given the
women’s empowerment, where despite long-term sheer size and scale of Cambodia’s forests, it
improvements, Cambodia still lags comparable is clear that they will continue to play a vital
countries, and more vigorous action is required role in regulating ecosystems and the climate,
to tackle disparities. and in supporting the material needs of local
communities. Thus, in turn, better forest
As in many countries, subnational patterns of management must be supportive of improved
human development vary considerably. Core human development.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 40



Chapter 2

Sustainable timber production

Photo credit: Grandis Timber

43 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

2. Sustainable timber production

Cambodia’s forests are extensive, yet under oriented around enhanced productivity and
serious pressure. In 1975, forests stretched over the careful stewardship of ecosystem resources.
73 percent of the country, but by 2018, they Equally, sustainably managed forests contribute
had shrunk to 46.84 percent.59 As the forests to human development and build resilience
disappear, so do essential resources that many to climate and other risks through healthier
people need for energy, food, medicine and ecosystems and more options for livelihoods.
livelihoods.

There is an urgent need to While reasons for the losses vary, one of the The state of forests today​
move towards sustainable most significant ones relates to constantly rising
management of forests, while demand for wood for construction, firewood, Cambodia’s forests cover 8.7 million hectares
enhancing forest productivity and charcoal. Meeting this demand mostly according to data from 2016 (Figure 2.1).
involves unsustainable supplies, such as from There are five major types: evergreen (15.8
economic land concessions, hydropower and percent); semi-evergreen (5.9 percent); deciduous,
mining projects, imports, and confiscated illegal including dry dipterocarp forests (18.4 percent);
timber, leading to a spiral of degradation for flooded forest (2.6 percent) and others. The last
people and ecosystems. comprises regeneration and regrowth forests;
mangroves; rubber, tree and oil palm plantations;
There is an increasingly urgent need to move and bamboo.60
towards sustainable management of forests,

Figure 2.1.

Forest cover map 2016

Source: Royal Government of Cambodia 2018

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 44

In 2002, the Government introduced a Considering the options: Sustainable forest manage-
moratorium on logging permits to arrest seven sustainable forest ment is a financially viable
deforestation. Most production forestry management models and socially responsible
concession agreements were cancelled by strategy to make sure that
2006. Today, because there are no active forest Cambodia faces a dearth of knowledge on ecosystems and ecosystem
concessions harvesting timber, some wood alternative timber production strategies that are services function well over
is supplied through unauthorized logging economically viable as well as oriented around the long term.
and harvesting, and through residual wood sustainable forest management and human
produced through clearing forests for economic development. To provide a sense of the options,
land concessions for large-scale commercial seven sustainable forest management models
agriculture. Given the 2012 moratorium on were assessed, mainly along financial parameters,
economic land concessions and rapidly growing but broader ecological and social dimensions,
demand for fuel and construction timber, including human development gains, were also
pressure on protected areas and other forest areas emphasized.
is likely to escalate.
Two different forest categories, planted and
Towards sustainable natural forests, were modelled. Different
forest management management regimes were applied, namely: the
private sector, concessions, community forestry
Mitigating this pressure and moving towards and regulation by the Forest Administration. For
sustainable forest management starts with planted forests, the assessment focused on the
restoring degraded forests and bolstering most common species such as acacia, eucalyptus
productive capacity in the 15 percent of forests and teak. It compared the models with a Baseline
currently reserved for timber harvesting (1.3 Model (a) of degraded land with frequent bush
million hectares out of 8.7 million hectares of fires. For the natural forests, lowland and upland
forests overall).61 forests were represented and compared with a
Baseline Model (b) of illegal logging.
Sustainable forest management is a financially
viable and socially responsible strategy to make The seven cases, summarized in Table 2.1,
sure that ecosystems and ecosystem services were grounded in practice and experience in
function well over the long term. It integrates the Cambodia, and based on representative examples
social, economic and ecological dimensions of of existing forest management (when available)
resource use, and supports human development or on hypothetical but feasible cases. They thus
through different channels. These can include offer realistic options for sustainable forest
providing timber to rural communities who management. Assessing the models entailed a
depend on these resources for a living and definition of biological and economic production
safeguarding a clean water supply.62 models; the identification of two cash flow
streams (costs/outputs and benefits/inputs); a
Cambodia’s Forest Law builds on sustainable calculation of net cash flows and carbon storage
forest management principles.63 Various initiatives benefits; and a summary of results by forest
have been piloted through community forestry, stocks, carbon stocks (at beginning and end) and
partnership forest restoration, rehabilitation, investment requirements. These steps are further
fuelwood production and REDD+.64 However, described in Annex 1.
concrete steps to promote the sustainable
management of production forests and guarantee
the long-term provision of timber to meet rising
demands are still in early stages.

45 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Table 2.1.

Examples of potential sustainable and human development gains modelled in the assessment

Type Planted Forest Natural Forest

Baseline Baseline Model (a) Degraded land with frequent bush Baseline Model (b) Illegal logging; no
fires; no timber or carbon storage management and no timber left

Case Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7
Species/ Acacia Tectona Tectona Eucalyptus Lowland Upland dry dip- Lowland
mangium grandis grandis terocarp forest
types Forestry sp. forest forest
Forest Private Private Administra- Forestry
Manager Administra- Community Forestry Concession
tion Timber and Administration Timber
tion non-timber
Production Commercial High-value High-value Industrial Carbon stock
objectives timber mix timber timber wood (fire/ forest increase, later
pulp wood) products
timber

Group 1

Sustainable forest management in planted forests

Case Study 1: Acacia mangium by a private company

There are private commercial afforestation/reforestation companies such as Think Biotec LLP that afforest degraded land
mainly with Acacia mangium, which could play a major role in such activities in Cambodia. The company is planting acacia
for climate change mitigation (mentioned in the Climate Change Memorandum of Understanding between the Royal
Government of Cambodia and the Government of the Republic of Korea), while promoting the sustainable supply of wood.
As the company’s production data were not available, a theoretical case was constructed.

Case Study 2: Tectona grandis (Teak) by a private sector operator

Grandis Timber Limited is a commercial reforestation company certified by the Forestry Stewardship Council. It focuses
on the establishment of timber plantations on previously deforested land. The company signed a contract with the Ministry
of Agriculture, Forestry and Fisheries for a land lease period of 50 years on an economic land concession in Kampong Speu
province. It employs 150 permanent staff and up to 750 seasonal labourers. As production data were unavailable, the appraisal
is based on estimates from the available certification reports, and assumed costs and benefits based on field experience.

Case Study 3: Tectona grandis (Teak) by the Forestry Administration

A theoretical example was assessed, where the Forestry Administration manages a high-value timber plantation, i.e., Tectona
grandis. The example is based on a plantation legally owned and closely monitored by the Forestry Administration. It covers
an area of 60 hectares. The plantation was established in 2001 in Kampong Cham province, Dam Bay commune. It is
intended to promote commercial forestry and increase national income through the forestry sector.

Case Study 4: Eucalyptus by the Forestry Administration

Industrial wood plantation for firewood and/or pulp wood production plantation with eucalyptus. The sample plantation
was established in 2002 in Takeo province. The site covers an area of 357 hectares (divided into four different blocks).
Growth data for the example were taken from literature.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 46

Group 2

Sustainable forest management in natural forests

Case Study 5: Community forestry in Kampong Thom
Prey Kbak Ou Kra Nheak Community Forest was selected as a representative example of a dry dipterocarp species forest. It consists
of semi-evergreen and deciduous forest and covers an area of 1,593 hectares. The area is legally managed by the community under a
contract signed between the community and the Forestry Administration with a 15-year management mandate. The contract will
be renewed every 15 years according to the results of the management by the community, as stated in a clause of the agreement.
Case Study 6: Rehabilitation of degraded dry dipterocarp forest by the Forestry Administration
The area is in the process of becoming a community managed forest, and is currently affected by heavy degradation, illegal logging,
seasonal fires and uncontrolled firewood collection. Currently, the area is under restoration to increase forest cover and increase
timber stock, while promoting the sustainable use of non-timber forest products and firewood supply to the local community.
Case Study 7: Mondulkiri concession
This sustainable forestry model is similar to Model 5 (community forestry), but the forest concession model is applied by the
community, which acts as a concession. The community-based production forestry demonstration project in the Buffer Area
of Seima Protection Forest is testing a new modality of implementation for the 2003 Community Forestry Sub-decree. The
work is part of the long-term collaborative Forestry Administration/World Conservation Society programme to manage the
Seima Protection Forest for environmental and social benefits. Currently, the area is part of the Seima Wildlife Sanctuary,
which is under the jurisdictional management of the Ministry of Environment.
• The Phase 1 target forest area is around 12,750 hectares of logged evergreen, semi-evergreen and mixed-deciduous

forest, with a high percentage of trees from the genus Lagerstroemia.
• The Phase 2 area covers about 29,000 hectares of similar forest in Sre Chhuk commune, Mondulkiri province and

Khseum commune, Kratie province.

Modelling approach and key indicators

Key financial indicators were used to compare the benefits included:
financial and overall viability of the models and • The proposed forest manager has full, legal and
combined with a risk assessment of each model.
• Internal rate of return shows the annual unlimited access to land and forest resources
during model periods of 20, 50 or 100 years.
percentage return on capital. It measures the • The scenario can be implemented by
potential profitability of the models. trained, motivated and fully dedicated staff,
• Netpresentvaluemeasuresprojectedprofitability according to a forest management plan.
over time. It is calculated by discounting future • Development costs, which might be substantial,
values of expenses and incomes back to the are borne by organizations outside the model.
present to show today’s value. • There is market access for legal forest products.
• Cash break-even indicates the point in time
when revenues equal investments (costs) and Economic estimates covered forestry activities,
thus evaluates financial performance. timber and non-timber forestry product sales
Several assumptions were used related to desired prices, lease and labour costs, and development
(or target) forest growing stock, species, wood costs. Assumptions were based on existing data
density, biomass expansion, forest produce and (when available), field assessments, extensive
timber harvesting. Specific assumptions on literature review, and standard or average
baselines, forest growth, silviculture, costs and conversion factors and rates.

47 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

A wide range of costs and benefits

The modelling showed that Case 2 (planted Results across the individual models were
teak) performs well on all indicators, followed further compared with the baseline scenarios.
by Case 1 (planted acacia). Case 5 (natural Only Baseline Model (b), the illegal cutting
forest managed by the community) also stands of natural forests, was assessed economically.
out as financially attractive, especially with This demonstrated that although illegal logging
carbon investments. Case 6 (rehabilitation activities have highly lucrative internal rates of
by the Forestry Administration) and Case 7 return of more than 80 percent and a net present
(concession) perform poorly. value of $3,182, they are neither sustainable nor
beneficial for human development (Figure 2.2).

Figure 2.2.

Baseline Model (b) on the hypothetical illegal cutting of natural forests

100 years of illegal logging was modelled, based on the following scenario:

• Forests consist of luxury timber (1 percent), commercial timber (74 percent) and non-commercial
timber (25 percent);

• In the first illegal activity, about 100 cubic metres per hectare are stolen; and

• The average growing stock is only 19 cubic metres per hectare (33.2 tons of biomass), but in total,
1,881 cubic metres per hectare are harvested.

Key results:
• Internal rate of return: 81 percent over the entire period
• Net present value: $3,182
• Benefit-cost ratio: 2.01

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 48

Compared with Baseline Model (b), the seven Overall, privately managed teak and community
forestry perform well, while rehabilitation by
sustainable forest management models are less the Forestry Administration and concession
financially attractive (Figure 2.3). Some stand perform poorly. This is based on comparisons
out as both financially viable and beneficial for across investment need, internal rate of return,
human development, however, even keeping in net present value with a 12 percent discount
mind that all seven are based on sustainability rate, and benefit-cost-ratios with a 12 percent
discount rate. On Figure 2.3, the darker shading
principles and the goal of increasing direct represents the cases with carbon funding, the
lighter shading those without carbon funding.
benefits to local livelihoods.

Figure 2.3.

A summary of results for the seven cases and Baseline Model (b)

(A) Investment needs (B) Internal rate of return

(C) Net present value (D) Benefit-cost ratio

49 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Of the seven cases, Case 2 (privately managed non-timber forest products by communities.
teak plantations) is the most attractive for The same forest managed by a concession would
investment (Table 2.2). But it shows a cash need 75 years (without carbon money) or 25
break-even period of 20 years. Shorter periods years (with carbon money) to reach cash break-
are only possible through acacia and eucalyptus even. Concession management produces low
management (15 years) or community forestry returns of only 1 percent to 5 percent per year,
with carbon revenues (10 years). The last yields although it promises other environmental and
very attractive internal rates of return of between social benefits.
11 percent and 16 percent per year in relation
to the model period (10 years and 100 years, The cases revealed that artificial rehabilitation of
respectively). degraded forests takes time spans of more than
100 years to break even. Investment costs are
Community forestry has the lowest investment very high and do not pay back in monetary terms
requirements and includes the extraction of within the modelling period.

Table 2.2.

Only community forestry shows acceptable returns within 10 years

Planted Forest Natural Forest

Parameter Case 1, Case 2, Case 3, Case 4, Case 5, Case 6, Case 7,
acacia, teak, teak, eucalyptus community Forestry concession
private private Forestry firewood forestry Administration
Administration rehabilitation

Internal rate of return ./. ./. ./. -8.8 -0.8 ./. ./.
first 10 years
(percentage per year) 12.0 13.6 11.4 4.3 7.3 -3.8 1.1
15 20 20 75
Internal rate of return 15 20 ./.
entire period
(percentage per year)

Cash break-even

With carbon investments(-C)

Internal rate of return10-C -13 ./. ./. -9.0 10.5 ./. ./.
(percentage per year) 14.8
14.8 12.1 3.8 15.6 -2.3 48
Internal rate of re- 25
turnn-C (percentage 15 10 ./.
per year)

Cash break-even-C 15 20 20

Notes: Internal rate of return over the entire modelling period in percentage per year. Net present value over the entire modelling
period. Cash break-even point in years, when revenues equal investment costs. Carbon credits (-C) of $1 per ton included in
appraisal. ./. not available, not computable. Red indicates negative indicators.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 50

Assessing potential risks Forestry Administration rehabilitation case,
inappropriate implementation can be predicted.

Risk analyses of each of the seven models If the scoring system is applied across the models,
assessed feasibility, potentially negative impacts the community forestry approach scores best,
and the likelihood of success. They covered while the concession approach scores worst.
information availability, environmental impact, Acacia and privately managed teak show similar
the probability of model occurrence and the risk scores. Surprisingly, Forestry Administration-
mitigation of negative impacts (Table 2.3). This managed rehabilitation and teak management
exercise yielded mixed results. Teak and natural score identically, and are even one score better
forests managed by communities perform best, than acacia and private teak. The scoring also
together with rehabilitation by the Forestry reveals that eucalyptus/firewood management is
Administration, which does, however, include the second most risky management approach.
high risk mitigation measures. The concession The lack of information is the most striking risk
model has the highest overall risk. factor. In this respect, mitigation measures show
For planted forest management, risks related to the lowest risks. Environmental impacts and
information availability are low to moderate. their probability of occurrence score identically
Environmental impacts due to pests and disease and are close to mitigation measures.
are at least moderate, and high for eucalyptus An example of information shortage concerns
(Case 4). The probabilities of negative impacts forest growth and associated harvests, which are
are at least moderate to high, and high for the biological value drivers in forest appraisals.
eucalyptus. Mitigation measures are available, Systematic forest growth assessments are not
but need proper enforcement. available, and existing studies draw a blurred
For natural forest management, risks related to picture of species performance, concluding that
information availability are moderate to high Cambodia is not yet maximizing growth potential.
given that models are based on relatively weak With one exception (Case 5, community
evidence. Expected negative environmental forestry), all cases and parameters score over
impacts are low except for the concession model, 50 percent and up to 80 percent on risk scores,
where unattractive financials will trigger cost- indicating high overall uncertainty for sustainable
savings by concessionaires. Mitigation measures forestry management in Cambodia.
are available, but due to the high cost in the

Table 2.3.

Risks vary, with teak and community-managed natural forests scoring best

Planted forest Natural forest

Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Total
acacia, teak, community Forestry concession (score)
private private teak,Forestry eucalyptus forestry Administration
rehabilitation 23 of
Administration firewood 35

Information Moderate(3) Moderate(3) Moderate(3) Low Moder- Moderate(3) Moderate High(5)
availability ate(2) High(4)

Environ-mental Moderate(3) Moderate(3) Moderate(3) High(5) Low Moder- Low(1) Moderate 21 of
impact ate(2) High(4) 35

Probability of Moderate Moderate Moderate(3) High(5) Low(1) Low(1) Moderate(3) 21 of
model High(4) High(4) 35
occurrence Low Moder- Low Moder- Moderate(3) High(5) Moderate
Low Mod- Low Mod- ate(2) ate(2) 9 of 20 11 of 20 High(4) 20 of
Mitigation erate(2) erate(2) 11 of 20 16 of 20 35
measures 14 of 20
12 of 20 12 of 20
Total (scoring)

51 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Private teak plantations and Varying assumptions Two top performers:
natural forest managed by private teak and
To highlight various external factors, the community forests
communities not only perform assessment changed some fixed assumptions.
best but also are less risky This process highlighted, for example, that Overall, the assessment of different models under
timber prices affect return rates, based on various forestry management regimes showed
Case 4, eucalyptus managed by the Forestry that private teak plantations and natural forest
Administration. Timber and firewood markets managed by communities not only perform best
tend to normalize when the illegal timber but also are less risky. The fact that the hypothetical
supply is cut off. If the sales price increases, illegal logging Baseline Model (b) outperforms
then the internal rate of return over 10 years all seven models financially partly explains why
would improve significantly, making firewood illegal logging prevails. Yet this finding should be
production financially attractive. seen in the light of potential human development
benefits offered by sustainable management, such
For Case 7, concession, cost reductions from as increased living standards and resilience, and
land lease and overheads (to $10 per hectare per climate change mitigation.
year) and an income increase from subsidies (of
$20 per hectare per year) did not significantly Sustainable forestry management is economically
improve financial attractiveness. This confirms viable, although several challenges must be
that the main value driver is the timber price. addressed. These include limited information
on different types of forests, their locations and
Change in the discount rate had little effect for current status; tenure insecurity and limited
the natural forest models. A modified discount authority of forest managers; outside pressure on
rate (10 percent or 15 percent as opposed to forest resources through illegal logging; and the
12 percent) still produced negative net present limited capacity of forest managers.
values, except for a 15 percent discount rate in
the community forestry case with carbon funds. Planted forests (cases 1-4): All models are
Higher discount rates mean lower present values promising and financially attractive with positive
for future cash flows. Increased carbon returns internal rates of return. Suitable species (e.g.,
(of $2 and $4 per ton compared to $1 per ton) acacia and teak) are well established and easy to
showed positive internal rates of return, with the manage from a silvicultural point of view. Acacia
exception of rehabilitation at $2 per ton. species are more prone to pests and diseases, a
risk that should be taken into consideration.
Rehabilitation of natural forests through
communities gives mixed outcomes, based on case Production of high-value timber (teak) through
6, rehabilitation by the Forestry Administration. a private sector management approach is one of
This variant led to lower growing stock at the end the most economically attractive models, with
of the modelling period and lower carbon stock. a higher internal rate of return over the entire
But investment requirements were more than modelling period, at 14.8 percent, than the other
halved, and the cash break-even was achieved in six models.
year 100 with carbon funding of $1.46 per ton.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 52

Eucalyptus, if planted for firewood production, it promises greater and more sustainable
is financially viable, with an internal rate of development benefits by promoting resilience
return over the modelling period of 4.3 percent, in both forests and local communities through
but still has a negative net present value. This is healthy ecosystem services, and more diversity in
due to very low timber prices as cheaper timber nature and livelihoods.
is available from illegal logging. The timber price
is likely to increase in the future once illegal Economic indicators may change depending on
logging is controlled, however. This would make the growth rate in planted and natural forests,
short rotation forestry more financially attractive the availability of marketable timber in natural
in addition to the expected gains in human forests, carbon prices, and, in particular, timber
development and sustainability. prices, which stand out as the main value driver
in forestry. When timber prices increase as
Natural forests (cases 5-7): Among natural illegal logging is minimized, sustainable forestry
forest models, a community-based management management will become more profitable and
approach is the most attractive in terms of potentially better positioned to deliver human
biological and financial sustainability, with an development gains.
internal rate of return over the modelling period
of 7.3 percent. To achieve this result, however,
communities must have full resource management
rights, going beyond mere rights of use and sale
of non-timber forest products. This will support
human development through strengthened
capabilities and increased autonomy in decision-
making, among other gains.

Rehabilitation of natural forests by the Forestry
Administration is not financially viable, with a
negative 3.8 percent internal rate of return over
the modelling period. A pure rehabilitation
approach to heavily degraded natural forests
in areas with extensive illegal logging is very
expensive with a high investment requirement
of $18,752. Cash break-even through timber
harvests and carbon funding alone will not be
realized within 100 years. Rehabilitation by
communities with carbon funds is less expensive,
and achieves greater local empowerment and
higher incomes.

Frequent low-volume harvesting in natural
forests as practised, for example, by communities
shows better economic performance than
standard concession approaches. In addition,

53 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Recommendations

Sustainable forestry Sustainable forestry management shows great harvesting scenarios based on low but frequent
management can stop the promise. It can stop the unchecked loss of harvesting, as this may provide better financial
unchecked loss of forests forests and the degradation of ecosystems, returns and stabilize community income.
improve human development prospects and
and the degradation of reduce vulnerability . There are several ways for Promoting comprehensive sustainable forestry
ecosystems, improve human Cambodia to move in this direction. management at all levels can deliver multiple
development prospects and gains. For instance, practical training on
First, accurate and adequate data on forests silviculture for local communities could lead to
reduce vulnerability are key to formulating effective management livelihood diversification and greater resilience.
strategies and making timely interventions Government staff need full capacities to
addressing local conditions. Cambodia needs implement sustainable management, including
to conduct a national forest inventory. This data on the type, growth and status of a forest
should include field surveys, remote sensing and under their oversight.
GIS technology. A forest resource management
information system should be established Community members could be engaged in
to supplement the existing National Forest monitoring and collecting data, including through
Monitoring System. It could provide data on the the use of modern communication technology.
condition of forest resources (e.g., production Financial and technical support should be
forest areas, species composition, annual provided to communities so that more community
allowable cuts, growth and yield, silvicultural forestry areas are approved, and to rehabilitate
treatment, and areas under natural and artificial degraded forest and protect healthy forests from
rehabilitation); concessionaires and the forest exploitation by local and external stakeholders.
industry (e.g., investment, installed capacities,
operating capacities, production of logs and A robust and supportive environment for
forest products, employees, equipment inventory sustainable forestry management would help avert
and trade); and market intelligence (domestic further degradation of valuable and unique forest
and international trends in supply, demand and resources. This entails clarifying and establishing
prices). secure tenure and boundaries, and defining full
responsibilities for forest managers (governments,
New strategies for managing planted forests communities and the private sector) to manage
should aim to minimize timber losses at all forests. Effective law enforcement is critical, and
production levels and to maximize benefits a formal timber legality assurance system should
to local populations. High-quality species be in place to ensure the legality and traceability
such as teak and other local species should be of wood supplies.
promoted as a priority while low-value acacia
and eucalyptus plantings can be promoted for Strengthened forest governance would be
supplying woodfuel. based on clear management strategies with
short-, moderate- and long-term scenarios, and
Strategies for natural forest management improved transparency. Guidelines and guidance
should be rooted in communities, providing could be developed to encourage the spread of
full legal authority and responsibility for best practices for implementation, monitoring
sustainable use. They could consider alternative and control.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 54



Chapter 3

Sustainable consumption and
production of woodfuel

Photo credit: GERES.

57 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

3. Sustainable consumption and production of woodfuel

In Cambodia, woodfuel such It is fundamental to human development for poor management. To meet energy and development
as fuelwood and charcoal households and small businesses to have energy to needs in the near term and into the future, Cambodia
play major roles in meeting cook, run machines and light homes and shops. needs to sustain vital forest resources, giving careful
energy needs, and In Cambodia, woodfuel such as fuelwood and consideration to woodfuel demand and supply,
generating income for charcoal play major roles in meeting these and and to management strategies for consumption,
many rural communities other energy needs, while charcoal production production and alternatives. Achieving sustainable
is an essential source of income for many rural production and consumption would maintain
communities. These uses persist despite serious forests, contribute to climate change mitigation,
health risks from the burning of biomass, which support better public health outcomes and provide
releases significant amounts of particulate matter energy security.65,66
and carbon monoxide. Deforestation and forest
degradation are other concerns, resulting in losses In the longer term, an energy transition will be
to ecosystems and contributing to the greenhouse essential, drawing on alternative energy sources
gas emissions that feed climate change. that are cleaner and more reliable, such as
solar and wind power. For now, the sustainable
In some sense, woodfuel rests at the nexus between management of woodfuel is an important step in
human development and sustainable ecosystem this transition.

Charcoal production in rural Cambodia.
Photo credit: GERES.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 58

Growing demand ​​

Woodfuel demand has grown rapidly in recent Demand for woodfuel is shaped by factors Woodfuel demand has grown
years, with annual consumption now reaching that also act as barriers to more sustainable rapidly in recent years, with
over 6 million tons, equivalent to clearing 71,600 use. There is limited awareness of the benefits annual consumption now
hectares of deciduous forests each year. In 2014, of more efficient technologies and alternative reaching over 6 million tons
woodfuel accounted for more than 64 percent energy sources, and concern around safety
of Cambodia’s total energy mix, followed by oil and convenient access to alternatives. Both
products (30 percent) and electricity (6 percent).67 households and industries maintain customs
Firewood is used for industries (0.8 million tons) and preferences for conventional uses of charcoal
and for household cooking (1.8 million tons). and fuelwood. With most wood sourced almost
Charcoal is used for cooking in households and free of cost, wood collectors and consumers have
restaurants (3.5 million tons)68. See Figure 3.1. few incentives to invest in alternatives.

Figure 3.1.

Both businesses and households depend on woodfuel

59 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Business use Domestic cooking

Around 80 percent of The garment sector consumes 0.4 million tons Around 80 percent of households still rely on
households still rely on of firewood annually. Factories generally use woodfuel as the main fuel for cooking (Figure
it to generate steam for ironing and washing 3.2). About 2.1 million use firewood and 0.5
woodfuel as the main processes, whereas electricity provides energy million use charcoal as the main fuel, consuming
fuel for cooking for lighting or sewing equipment. Some factories 1.8 million tons of firewood and 0.4 million tons
use up to 30,000 square metres of firewood per of charcoal (equivalent to 3.5 million tons of
Figure 3.2. year. In factories surveyed, firewood represented fuelwood) per year.73
the main source of primary energy, at up to 80
percent of the final energy consumed, but only Urbanization has increased the use of more
12 percent of the costs. Considering an average advanced types of energy for cooking, such as
total energy cost of 16 percent of total costs, liquefied petroleum gas (LPG) and electricity.
firewood would represent 2 percent of overall Even so, LPG is generally a secondary fuel, as
garment production costs.70 many households still rely on woodfuel as their
main fuel for cooking. Electricity is mainly used
Brick-making consumes 0.4 million tons of for rice cookers, making it a significant but not
firewood annually as part of producing more the main source of energy for cooking. Phnom
than 500 million bricks for construction, a Penh and Sihanoukville likely have higher rates
rapidly growing industry.71 The production of use of LPG and electricity than other urban
process, requiring a temperature of more than areas, as they are well supplied with both.
850°C, entails significant energy consumption.72
Rising household income does not automatically
Restaurants in homes and traditional markets lead to a switch to more advanced fuels. Choices are
and street food vendors are major consumers of influenced by factors including price, safety, health,
charcoal; there are more than 63,000 restaurants convenience and cooking traditions (Box 3.1).
around the country. Fuel choice is linked to the
type of dish that is cooked, as well as the quantity
cooked; charcoal is preferred to keep food warm
for a long time.

Share of households using firewood, charcoal, LPG and electricity

Source: GERES 2015.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 60

Box 3.1.

Factors affecting households’ choice of types of energy

Price: A comparison of three types of cooking devices Health: Households are generally aware of the adverse impacts
showed that 15 kilogrammes of LPG is the cheapest cooking of cooking pollutants on health. Reducing exposure to smoke
option, in addition to providing other benefits such as safety and creating a cleaner cooking environment are important
and a lack of particulate matter or carbon emissions. Double elements driving cooking strategies.
burners produce little emissions and are safer than portable
LPG. The initial cost is US$80 plus other costs for renewing Convenience and cooking traditions: Households use different
the tank, which can be a barrier for poor households. fuel for different types of dishes. A typical Cambodian meal
comprises several dishes, including rice as well as a fried dish, soup
Safety: Many households have safety concerns about LPG, and a grilled dish. In urban areas, LPG is preferred to cook fried
another major barrier for use. Past accidents related to the dishes, while an electric rice cooker is used to cook rice. Charcoal
use of small canisters that are refilled many times without might be the preferred fuel for grilling or cooking soups in big pots
any control have resulted in some households’ reluctance that require a long simmering time, however. Installing LPG and a
to use LPG. Originally used in China and the Republic of rice cooker, therefore, may not automatically result in a complete
Korea, mostly for picnics, these canisters are then imported switch from using wood or charcoal.
to Cambodia to be refilled several times.

Sources: Kong and Handley 2017, Biney et al. 2015.

A mix of sustainable and non-sustainable supplies

Woodfuel comes from sustainable and non- amount of wood supplied from community Woodfuel comes
sustainable sources across Cambodia. The former forestry is limited, however, as many community from sustainable and
include firewood supplied from areas with forests are highly degraded with limited non-sustainable sources
managementplans,whichensuresthesustainability productivity. Community forestry also faces the across Cambodia
of biomass stock and long-term availability. challenge of competing against illegal woodfuel
Unsustainable sources include by-products of suppliers, whose prices are low. Moreover, despite
forest clearing for agricultural production, such as official registration and the use of community
economic land concessions, and direct harvesting forestry management plans, many community
of firewood. Non-sustainable sourcing can be legal, forestry initiatives lack necessary permits to
especially in the case of concessions, if all necessary produce and distribute charcoal legally.
permits are obtained.
Woodfuel also comes from replacing rubber
An estimated 77 percent of woodfuel consumed or cashew plantations (Figure 3.3). While
in Cambodia emanates from unsustainable roundwood such as sawnwood from old rubber
sources, with 48 percent from forest conversion plantation replacement is mainly exported,
for agriculture, including economic land residues have value as firewood and are sold to
concession conversion, and 29 percent from local distributors.75 But currently, few plantations
overharvesting of firewood in forest areas.74 are old enough to be harvested. Most existing
rubber plantations were planted after 2000 and
Among sustainable sources, one example likely will not be ready for use within the next
is community forestry, a legally approved 10 to 15 years. Further, the charcoal from rubber
management arrangement allowing forest- and cashew plantations is of a significantly lower
dependent communities to participate in the quality than charcoal currently sold on the
sustainable management and use of forests. The market.

61 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Figure 3.3.

Woodfuel, mainly residues, comes from replacing plantations

Source: GERES.

In general, fuelwood Unstainable sources include natural forests, Limited impacts of fuelwood
collection by households protected areas and economic land concessions. collection by households
have limited impacts on Some woodfuel comes from natural forests
forests and ecosystems and protected areas reserved for conservation, In general, households collect firewood for
although extracting wood from these areas is cooking from within 5 kilometres of their homes
illegal. in varying locations . Households in the Tonle Sap
and coastal regions source more than 50 percent
After the introduction of economic land of firewood from flooded forests or forests, while
concessions in 2005, many previously forested households in the plains, plateau and mountains
areas were converted to large-scale agriculture. source their firewood mainly from around their
As a result, ample wood became available. But own homes and agricultural lands.76 Firewood
this situation is gradually changing due to the collection for household cooking is generally
moratorium on concessions introduced in 2012 not a major threat to the forest ecosystem, except
to conserve the remaining forests. As concession in the Tonle Sap and coastal areas (Figure 3.4).
areas no longer supply wood products in high There it is likely to have negative environmental
demand, there could be a shift in sourcing, impacts due to overharvesting and the presence
resulting in mounting pressure on surrounding of important ecosystems for fish reproduction.
natural forests.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 62

Figure 3.4.

Pressure from household firewood collection for domestic cooking is relatively limited

Source: GERES 2015

A proliferation of charcoal production and impacts of concern

Charcoal production businesses have recently provinces showed that charcoal represented the Charcoal production businesses
proliferated in rural areas as a key income majority of household income, ranging from 34 have recently proliferated in
generation activity. More than 80,000 households percent to 57 percent of the total. Charcoal is rural areas as a key income
produce charcoal for income. With a national mostly a dry season activity to gain supplemental generation activity and have
average retail price of 1,000 riels per kilogramme, income, although some producers in Kampong concerning impacts on forests
the sector is worth more than $100 million. Thom produce charcoal all year long as a main
source of income.
While many charcoal producers in Kampong Speu
initiated their businesses after the late 1990s, most Producers source different wood species for
producers in other provinces, such as Kampong charcoal of high and normal quality. Common
Chhnang, Banteay Meanchey, Battambang and sources are natural forests, where wood is
Kampong Thom, have started their businesses typically collected for free. In Kampong Speu,
within the last five years (Figure 3.5). producers source most of their wood from
Phnom Aural, which is under high pressure from
A field survey in the five main charcoal production their activities. In Kampong Thom and Kratie,

63 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

large-scale conversions of forest for agriculture, care to improve charcoal quality. On average,
especially through economic land concessions, they produce 25 tons of charcoal per year, but it
have made wood readily available. Most producers is possible to produce more than 140 tons using
purchase wood from traders who supply specific multiple kilns in constant operation.77
wood species. A few charcoal producers harvest
wood in the forest. In Battambang and Banteay Charcoal producers generally sell to distributors,
Meanchey, most wood originates from non-forest who provide charcoal to households, restaurants
areas. Trees are cleared from small degraded areas and retailers. Among all actors in the supply
to expand existing fields or roads for agriculture. chain for charcoal, distributors derive the most
significant part of added value. Figures 3.6 and
On average, charcoal producers have two 3.7 show value chains for charcoal supplies that
fixed kilns made of mud and clay; some have a reach Phnom Penh from Phnom Aural and
metal chimney. The kilns normally require low Kampong Thom.
investment and limited maintenance, and have
a long life span. Very few producers take extra

Figure 3.5.

Location of charcoal producers

Sources: GERES 2015, Agricultural Census 2013, National Institute of Statistics 2015.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 64

Figure 3.6.

Value chain of charcoal from Phnom Aural supplying Phnom Penh

Figure 3.7.

Value chain of charcoal from Chambok from ELC

Source: VANDYROS

65 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Many options to move towards sustainable energy

Cambodia has many options Cambodia has many options in improving of charcoal. Production efficiency can increase,
in improving the efficiency the efficiency of woodfuel production and however, through improvements in wood drying,
of woodfuel production and consumption, and switching to alternative energy kiln construction and kiln operations.
as part of moving towards more sustainable
consumption, and switching production and consumption. Improved charcoal kilns can raise efficiency
to alternative energy as through internal and external heating, and
part of moving towards Improving production efficiency for heating with recirculated gas. One example
sustainable energy charcoal production is the Adam Retort, which achieves yields
closer to more highly efficient brick kilns
In producing charcoal, traditional and widely while cutting methane emissions in half.78 The
used practices are often associated with low yield GreenMad Dome Retort is a larger and more
and high energy losses, with a conversion rate of efficient version with higher volume and better
6 to 7 kilogrammes of wood to 1 kilogramme insulation.

Improvements for traditional charcoal kilns can enhance production and energy efficiency
Photo credit: GERES.

A higher efficiency Adam Retort charcoal kiln in Strung Treng province.
Photo credits: GERES (left) and GreenMad Dome Retort, GIZ (right).

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 66

Improving energy efficiency for the garment and brick sectors

Improved energy efficiency is critical in the water condensation and energy consumption.
garment and brick sectors as the main consumers Regular monitoring through thermal cameras
of 0.8 million tons of fuelwood used by industries could help identify pipes with high-temperatures
each year. In garment businesses, existing boilers for rapid reinsulation. Further, by recovering
could be replaced with energy-efficient ones, condensate water, the temperature of boiler feed
but given the cost of a new boiler, which is more water could be significantly increased.
than $60,000, and a cheap supply of woodfuel,
many garment businesses do not prioritize such Among brick businesses, rising wood prices pose
an investment. New boilers combined with a an increasing incentive to switch to improved
switch to agricultural residues, such as rice husk kiln technologies. Considering the required
briquettes, could offer returns with a better investment and the current difficulties for brick
business case. businesses to get loans, support to commercial
banks to devise tailored financing solutions could
Another measure would be the insulation of steam be one way forward (see Table 3.1).
pipes and regular monitoring to reinsulate as leaks
occur. Poor insulation can significantly increase

Table 3.1.

The main brick kilns currently in use in Cambodia

Intermittent or tunnel kiln Traditional batch kiln Hoffman or continuous kiln
(boat kiln) (square/ elephant/ round kiln) (rotary kiln)

Fuel used Rice husk Both firewood and rice husk
Firewood 5.53 2.52
Specific energy consumption 10% 18%
8.41
Share of the brick production
72%

Source: GERES.

67 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Improved cooking stoves to improve efficiency

Greater efficiency and the transition to more stoves, for example. The Neang Kongrey Stove
sustainable energy will largely depend on changes shows similar savings. Both are designed
in households, where more than 5 million cook around local cooking habits. Support for their
stoves are in use. In rural areas, more than a production and distribution has already resulted
quarter of households still cook with highly in the New Laos Stove and Neang Kongrey
inefficient basic cooking stoves referred to as Stove capturing 25 percent and 14 percent of
three-stones or Siam/Mong stoves. the woodfuel cook stove market, respectively, a
significant success. Over the decade to the end
Some progress has been made in introducing of 2014, more than 3.6 million improved cook
improved stoves (Table 3.2). With better stoves were sold. Production and distribution
insulation and a smaller combustion chamber, provide employment to more than 550 workers,
the New Laos Stove allows significant fuel savings especially in Kampong Chhnang.
of around 20 percent compared to traditional

Table 3.2.

Main improved cook stoves currently in use in Cambodia79

New Lao Stove Neang Kongrey Stove

Retail price $1.6
$3.5

New Lao Stove Manufacturing country Cambodia
Cambodia
High power efficiency

24.1% (wood), 29.1% (charcoal) 25.5%

Low power specific fuel consumption (MJ/min/l)

Neang Kongrey Stove 0.036 (wood), 0.028 (charcoal) 0.035

Source: GERES.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 68

Switching from woodfuel to alternative energy

An example of moving away from charcoal use to 1.7 million tons of wood. A significant share
altogether involves the industrial and community of paddy is exported to neighbouring countries
production of char-briquettes. These can be made such as Thailand or processed locally, however,
from several types of widely available biomass. In which diminishes the potential for rice husk to
Phnom Penh, Khmer Green Charcoal produces become a more broadly used energy source.
and sells char-briquettes made from coconut
shells and charcoal wastes. Some entrepreneurs are Brick and cement factories absorb a significant
working to develop bamboo pellets and briquettes share of what is produced, as do some food-
to replace wood for industrial use. processing industries located close to rice mills.
In the garment industry, the use of rice husk
Rice husk can replace fuelwood use for the briquettes instead of firewood has already been
industrial sector.80 Rick husk generates fuel, heat a major climate change mitigation action. Actual
or electricity through thermal, chemical or bio available residues are unknown and depend on
processes, and is in ready supply, with more than many different factors, including distance to
8 million tons of paddy milled in 2014.81 With markets, distance from neighbouring countries
no agricultural use, rice husk could become a key and other primary users.
source of energy. National production potential
could be more than 2 million tons, corresponding

Coconut shells Rice husk briquettes
Photo credits: GERES

Challenges in promoting to pay. As a result, regulations are rarely followed,
sustainable woodfuel and very few permits are obtained for legal
options firewood harvesting and charcoal production.

Cambodia’s Forestry Law requires permits to Illegal production and trade of woodfuels creates
use, produce, transport and trade forest and non- several notable challenges. There is little incentive
timber forest products.82 The Protected Area Law for producers to invest in sustainable production
prohibitscommercialextraction offorest products, or improve energy efficiency, as most wood
non-timber forest products and fuelwood.83 is readily available at very low cost. Similarly,
industrial users have limited motivation to
Procedures for obtaining permits for woodfuel switch to other energy sources such as briquettes
are complex and expensive, lowering incentives to from rice husk or bamboo, as these cost at least
apply. Fines for violations are very high, at a level 50 percent more. Sustainably produced charcoal
that most producers and distributors cannot afford and firewood cannot compete in the market given
higher prices related to ensuring sustainability on
top of formal taxation, among other issues.

69 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Ecosystem sustainability, Recommendations management. Few commercial timber
human development and operations or plantations provide woodfuel,
Cambodia’s longer-term Ecosystem sustainability, human development which is a missed opportunity. Residues from
energy transition hinge in and Cambodia’s longer-term energy transition timber production84 are significant, and could
large part on the sustainable hinge in large part on the sustainable production supply many charcoal and fuelwood operations.
production and consumption and consumption of woodfuel. Integrated production models that combine co-
Extend law enforcement: Moving in that production of roundwood and fuelwood could
of woodfuel direction could begin by recognizing that it is yield a significant amount of woodfuel. This
inefficient and ineffective to regulate charcoal can generate short-term income from woodfuel
Figure 3.8. production mainly through fines leveraged at production and long-term higher value income
production sites. To apply regulations more from roundwood production.
comprehensively, the Government could build Introduce a low-cost sustainable woodfuel
“charcoal checkpoints” into existing police traffic certification scheme. This could encourage
control systems. This would boost regulation as sustainable production. It would entail standards
well as taxation, which could then be directed and labelling to regulate the entire fuelwood and
towards incentivizing sustainable production charcoal production chain, making it possible to
and preventing illegal production. ensure that certified charcoal is not mixed with
Enable fuelwood production through non-sustainable charcoal. Certification schemes
plantations and sustainable forest could target wood producers for sustainable
forest management, and charcoal producers and
distributors for chain of custody.85 See Figure 3.8.

Chain of Custody Certification Scheme

Source: GERES.

Introduce differentiated taxation to If well designed, the system could generate
incentivize sustainable woodfuel production. funds for local law enforcement, and support
the development of local livelihoods and
This would tax non-sustainable woodfuels that community forestry activities. A value added
originate from free firewood collection in forest tax exemption for sustainable woodfuel and
areas at higher rates than sustainably sourced alternative sustainable energy sources could be
woodfuels. Table 3.3 presents a model inspired applied across the market, making these options
by a scheme implemented in Chad. Effectiveness more competitive.
requires chain of custody certification schemes
as well as an efficient law enforcement system.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 70

Table 3.3.

Differential taxation for incentivizing community-based firewood harvesting

Beneficiaries Sustainably Open access Illegal
managed exploitation

Household Energy and Environment Agency 100 riels 2,000 riels 4,000 riels

Ministry of Finance 100 riels 2,000 riels 4,000 riels

Local management structures 1,000 riels

Community 800 riels

Total 2,000 riels 4,000 riels 8,000 riels

Source: GERES.

Create producer and consumer networks and restaurants. This would enable producers
for community forestry-sourced woodfuel. to reduce transaction costs associated with
The marketing and distribution of sustainable marketing.
woodfuel, including that sourced from
community forestry, faces the significant Provide technical and financial assistance
challenge of competing with illegally sourced for energy efficiency and fuel switching. This
and much cheaper woodfuel. Furthermore, should initially be targeted to charcoal producers
community forestry products have limited with the smallest investment capacity, as a way
market differentiation and access. To improve to improve their current practices and kiln-
this situation, producer and consumer networks building, before promoting new technologies.
for community forestry-sourced woodfuel could Transformational change will need to be driven
be established. by campaigns targeting factories and clients to
increase awareness of the benefits of legal and
On the production side, cooperatives could form, sustainable charcoal for forest ecosystems and
linking registered community forests, traditional human well-being.
charcoal producers and distributors. They could
aid production, processing, distribution and Provide initial financing support: Even if
marketing. Cooperatives could also provide the above interventions are achieved, some
assistance with technology and knowledge sustainable woodfuel initiatives will not be fully
transfer, and make investments in enrichment competitive in the market in the short term.
planting and assisted natural regeneration of trees Initial financing will be necessary to catalyse and
with high potential for charcoal. Complementary accelerate transformation of the sector.
regulatory support would help community
forestry groups remain competitive through
operating small chainsaws and moto-trailers for
fuelwood harvesting and transport.

On the consumer side, modern technology
such as a smartphone app to order sustainable
charcoal could be introduced to develop a base
of regular consumers, such as among households



Chapter 4

Upgrading value chains for
non-timber forest products

73 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

4. Upgrading value chains for non-timber forest products

Beyond timber and woodfuel, Cambodia’s forests diversification are clear. But much depends on
provide a wealth of other resources including plants the sustainable management of local resources
and wildlife.86 Properly managed and regulated and the ability of local communities to draw
harvesting and marketing of these non-timber on them.89 So far, these ends have largely not
products can deliver significant contributions been achieved, even as the forest resource base
both to forests and people in rural communities. is steadily eroding. Rural communities are
losing potential benefits while their traditional
Around 3 million households Around 3 million households in Cambodia safety net is being undermined. Market links
in Cambodia depend on depend on non-timber forest products for their for some products are underdeveloped, and
livelihoods.87 Many are rural and poor. They current regulations are not fully aligned behind
non-timber forest products turn to forests to build homes and boats, and sustainable harvesting and local livelihoods.90
for their livelihoods to make baskets and other household items.
Honey, vegetables, fruits and fish are among Better support could come through upgrading
many sources of food, and a range of plants the value chains of non-timber forest products.
supply medicines. Some products, such as resin, This depends on developing products and
provide important cash incomes, especially in markets that open new commercial and livelihood
indigenous communities.88 opportunities, under a framework of enhancing
human development and the sustainable
Long-term benefits for human health and management of forests and ecosystems.
nutrition, household income and livelihood

Tracing value chains for five products

Our value chain analysis To start defining what this support might look commodity is harvested, processed and sold. It
focuses on five non-timber like, this report applied value chain analysis focuses on who is involved, and how each actor
to five non-timber forest products, bamboo, benefits or profits.91 The results can help identify
forest products, bamboo, rattan, resin, forest honey and medicinal opportunities and challenges for upgrading value
rattan, resin, forest honey plants. All of these are commonly harvested chains, given factors such as resource access,
for household use, and for trade and income. regulatory frameworks, power relations and
and medicinal plants Value chain analysis examines how a product or environmental change.92

Photo credit: NTFP-EP

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 74

Bamboo: Potential in domestic and international markets

Collection and transport: Bamboo is available in size. Bamboo poles are mostly sold in depots and Greater benefits for local
in at least 12 provinces and mainly collected for construction shops. Some basket producers with bamboo producers can be
household use, and for fisheries and construction. access to markets sell their products directly to achieved through enhanced
It is rarely traded due to low market demand; users. Low-value baskets are exported to Thailand production efficiency,
collection for trade only takes place when there but export is highly vulnerable to economic shifts increased volume, improved
are sure buyers. Demand for poles and culms Key findings from the value chain analysis quality and designs, and
has declined over the years, and collection is The bamboo sector is characterized by labour- expanded market reach
physically demanding, relying on handsaws. intensive production, and rudimentary and
Those with alternative livelihoods tend to avoid low-cost product alternatives. Bamboo culm
bamboo collection. Transport is generally by raft, collection and processing contributes a household
ox carts or tractors. daily net income ranging from less than $2 to
$34, depending on the proximity of resources
Processing: The main bamboo products include and markets, available physical capital (i.e., tools,
baskets, incense sticks and food sticks. These transport), market demand and productivity level.
products are generally basic, labour intensive and
low in value. Greater benefits for local bamboo producers
• Baskets: The production of seasonal, of incense and food sticks and woven bamboo
products can be achieved through enhanced
functional, low-value baskets is mainly by production efficiency, increased volume,
women at the household level, using simple improved quality and designs, and expanded
tools. Production has declined due to low market reach. These advances depend on
interest and scant benefits. ready access to bamboo resources, tools and
• Incense sticks: Production capacity for equipment, and transportation, which can
incense sticks is low at 7 to 10 kilogrammes increase value and income. Other factors are
of sticks per day, compared with India, where appropriate technology and guarantees of sales
hand-operated machines allow a production volume through market access support, such as
capacity of 20 to 30 kilogrammes a day. through links with traders or buyers.
• Food sticks: Domestic production only Market shares could also be expanded for woven
meets about 10 to 15 percent of local bamboo handicrafts if more export is enabled—for
demand. Locally made sticks are of low example, to Thailand—as these products create the
quality compared to imports from China. highest number of jobs and level of value addition
among the bamboo processing industries.
Wholesale/export/retail: A limited number of
bamboo retailers and wholesalers are mainly small

Figure 4.1.

The value chain for bamboo

Sources: Khou 2015; National Institute of Statistics 2013; NTFP-EP 2015; NTFP 2016; Oxfam 2006; PMIC 2011.

75 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Rattan: Improved competitiveness aimed at exports

Collection/aggregation: An estimated of low-value products per year since 2009.96 Some
290,000 households94 collect rattan, mainly collectors with motorbikes transport supplies
from wild growth outside community-managed directly across borders for informal trade.
forests. There are no rattan plantations except
for enrichment plantings supported by non- Key findings from the value chain analysis
governmental organizations (NGOs). By one
estimate 1,500 tons of rattan can be sourced The net household income from rattan collection
across the country from 8,000 hectares that are per season can range from a low of $60 to a high
under sustainable resource management.95 of $575. The processing of rattan contributes
from $315 to $1,575 per year to a household.97

Increased benefits would come Semi-processing/production: Post-harvest For collectors, value is derived through volume.
through resource management treatment and processing of rattan requires boilers Yet unsustainable harvesting and management
and space to dry. Machines used for splitting and will diminish income in the long term and
oriented around sustainable sizing are mostly obsolete, producing copious weaken the rattan value chain. Increased
harvesting, enrichment planting waste and low-quality products. benefits would come through resource
management oriented around sustainable
or cultivation in Wholesale/export/retail: Quotas, transport harvesting, enrichment planting or cultivation
community-managed forests, and export permits, and royalty payments are in community-managed forests, and selective
and selective collection mainly required for semi-finished and finished products collection mainly of higher value rattan.
at commercial scale. Most harvested rattan is
of higher value rattan sold unprocessed to intermediaries/traders partly In rattan processing, more could be done
due to regulatory requirements and partly due to to improve product design and increase
convenience. There are 65 rattan furniture retailers productivity. An export strategy is key to
who source directly from manufacturers. Exports develop the processed rattan industry once
are weak, mainly focused on less than 1,000 tons competitiveness and capacity are strengthened.

Figure 4.2.

The value chain for rattan

Sources: National Institute of Statistics 2014; Chey et al. 2015; International Trade Centre 2016; Khou and Vuthy 2006; Rattan
Association of Cambodia 2017; Val 2009; WWF 2010, 2011, 2013.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 76

Resin: Investments beyond the raw value chain

Collection/aggregation: Resin has traditionally Key findings from the value chain analysis Protecting resin trees from
been harvested for income in at least 10 provinces. Collecting resin can provide a household with illegal logging and enhancing
Major activities in the north and north-east take income of $340 to over $1,700 per year, depending production through plantings
place especially in the Prey Lang Landscape and on the number and age of traditionally owned are important measures to
the Eastern Plains Landscape, where an estimated trees and market demand.101 The estimated value secure and increase supplies
28 to 43 percent of households engaged in resin of the sector is at $4.7 million to $15 million.
tapping in 2014.98 Changes in land use and illegal The resin value chain has only marginal value
logging threaten the volume and stability of resin addition and is highly vulnerable to limited
supplies, however. markets. Currently, there is little room to
Semi-processing/wholesale/export/processing: increase benefits in the raw value chain except
Permits and royalty payments are required through semi-processing, increased volumes and
for semi-processing of resin,99 which includes streamlining the value chain .
storage and additional activities considered Protecting resin trees from illegal logging and
beyond customary rights. Processing capacity enhancing production through plantings are
is very weak and limited to low-value products important measures to secure and increase
for local markets. Finished products include supplies. Limited domestic and export markets
traditional torches made by resin collectors or call for investments in new and high-value
local households for lighting, fire starters and products, and the development of new value
wood finishes. chains. Diversifying to products such as varnish
Retail: A few long-established enterprises in and paint can offer benefits when market prices
Phnom Penh and provincial capital markets for raw resin are low. Investment in research and
sell raw and filtered resin. Boat and house development, entrepreneurship promotion and
owners purchase raw resin as a cheap varnish. strengthened support services could develop the
Wholesalers are usually the main retailers value chain, and foster new products and markets.
but there are also microretailers. About 20
wholesalers and exporters source from 17,800
resin tappers around the country.100

Figure 4.3.

The value chain for resin

Sources: NTFP-EP 2011; Prom 2011, 2017; SFB 2015; Winrock 2015.

77 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Forest honey: Strong prospects for growth and value

Collection/aggregation: Forest honey used to and high-end tourist boutiques. Efforts have
be collected only for household consumption been made to penetrate the export market, but
but is now an important source of supplementary export is still negligible.
income in 10 provinces. In villages near forested Key findings from the value chain analysis
areas, between 15 and 30 percent of households While a small sector, forest honey has high potential
depend on honey.102 In 2014, 31,000 households for growth and high-value benefits for rural people.
were involved in forest honey collection.103 Seasonal, limited supplies and strong demand make
the value chain highly competitive. Forest honey
Enhanced production, inputs for Forest honey from native species, mainly Apis can contribute $280 per household each year, 104 up
improved quality and perceived dorsata and Apis cerana, is collected primarily to 40 percent of household income.
from wild sources by households with traditional Enhanced production, inputs for improved
value, specialty honey honey-hunting skills. Production was small at an quality and perceived value, specialty honey
positioning and market access estimated 40 to 50 tons in 2009. Forest honey positioning and market access can increase
is harvested based on customary rights in state benefits. Microfinance, transportation and
can increase benefits forests for only about three to four months a year. telecommunication are some support services
Roving and village traders collect and transport that would facilitate the engagement of small-
honey that has been harvested. scale producers in the value chain. While social
enterprises currently try to provide a long-term
Processing: For local markets, honey processing and stable engagement, this is difficult because of
is rudimentary, composed of comb squeezing, high competition, and limited entrepreneurial,
filtering and bottling. Some honey collectors and organizational and financial capacities.
traders use makeshift tools and recycled bottles
for processing, usually not meeting standards of Domestic, regional and tourism markets offer
quality and hygiene. Competition for the limited opportunities for increased profits. Unchecked
wild honey supply is very high. price increases, and uncertain quality and
authenticity impact competitiveness in domestic
Wholesale/retail: A mix of enterprises and and international markets, however. This calls
NGO-initiated social enterprises package and for measures guaranteeing quality through the
sell forest honey, including Café Mondulkiri, implementation of national honey standards and
CEDAC, Nature Wild and Bee Unlimited. certification.
The retail sale of honey includes direct sale to
Figure 4.4. consumers, small market kiosks, organic shops

The value chain for honey

Sources: Andaya 2013; National Institute of Statistics 2014; McNaughton and Meang 2009; MSME 2010; SFB 2015.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 78

Medicinal plants

Collection: Medicinal plants are mainly sourced Key findings from the value chain analysis
from eight provinces. In 2012, at least 40 to 50 A collector of medicinal plants can earn $3 a
percent of Cambodians still turned to traditional day, while a wholesaler can earn double that
medicine, according to the Ministry of Health. amount. A processor can earn up to $26 a day,
An estimated 200,000 households collected herbs but this requires a high level of capitalization. For
in 2014, including for medicinal purposes. 105 ordinary medicinal plants, margins are small for
Medicinal plants are collected from wild and all actors, and income and profits are generated
cultivated sources. About 70 percent come through volume.
from primary dense forests and 19 percent are
from secondary degraded forests. Opportunistic High dependence on traditional medicines,
collection sometimes occurs in response to high Government support and new generations of
demand and prices. traditional healers underpin a stable domestic
Semi-processing/aggregation/wholesale/ market, although there are opportunities for
processing: Aggregators at the village and innovation and upgrades. A well-organized and
district levels consolidate collected supplies, sort active network of traders and retailers operates in
them for quality, and dry and repack them for key collection areas.
transport. Semi-processing is simple and crude,
and often consists of collectors cutting plants Engaging collectors in sustainably managing Besides sustainable
into small pieces and drying them in the forest. resource areas where medicinal plants grow harvesting protocols,
Retail/export: Phnom Penh is the main hub for is necessary to sustain supplies over the long production enhancement,
the national market, although records on traded term. Besides sustainable harvesting protocols, standards development and an
medicinal plants are scarce. Export markets production enhancement, standards development international trade strategy
are mainly Thailand and Viet Nam, with some and an international trade strategy should be should be formulated, aimed at
re-exports to China by wholesalers or agents formulated, aimed at growing domestic and growing domestic and
through arrangements with consolidators. Some international markets for natural medicine and international markets
supplies are transported directly to borders biotrade. The tourist market offers opportunities
without passing through the capital. for direct sales by collectors and wholesalers.
Improved processing and packaging should help
meet standards for safe consumption.

Figure 4.5.

The value chain for medicinal plants

Sources: UNDP Cambodia 2017b; Walston 2008; Khou et al. 2009; Ministry of Health 2012; WWF 2009.

79 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Challenges to productivity and sustainability

Value chain analysis reveals several challenges policies is constrained by insufficient human
faced by rural people striving to benefit from resources and budgets. Regulation focuses mainly
non-timber forest products. These challenges on customary access and subsistence, with limited
occur across all stages of the value chain, from attention to commercialization. Initiatives to
sourcing to production to marketing, resulting in improve the business environment in Cambodia
many lost opportunities. have not yet addressed the specifics of forest-
Benefits are typically constrained by limited product-based enterprises.
production capacity and inadequate use of In general, there is still insufficient support
appropriate tools. Costs can be high and quality for enterprise development, skills training,
low, resulting in uncompetitive products. Poor product development and trade, limiting
capacity for investment, innovation and design potential for growth, innovation and market
curtails opportunities for market expansion. expansion. Capacity-building and business
Without technical advice and access to capital, it development support have mainly been provided
will be hard to improve production, especially at by NGOs in discrete projects. These typically
the community level. focus on small groups or just some actors in
Harvesting is often unsustainable, depleting the value chain, without the long-term support
the resource base and eroding potential necessary to develop and grow the sector as a
income. In many cases, external factors such whole. Post-project uptake has been slow as it is
as needs for large-scale commercial agriculture not clear who should do this.
threaten resources. Other issues arise among Other issues stem from unclear and complex
collectors. With insecure access to resources, procedures for permits and royalties in relation
they have little incentive to pursue product to commercial trade and processing. These
enhancement, investment or sustainability. erect a compliance barrier for small enterprises,
Dependence on wild supplies further limits preventing them from expanding their market
volume and predictability. reach or moving beyond informal activities.

Policy support for value addition and Value chains in general are underdeveloped
commercialization of non-timber forest and depend on single and traditional markets.
products has been limited. The National Information on the demands of domestic and
Biodiversity Strategy and Action Plan 2016, the international markets is not readily available to
National Forestry Program, the Draft National suppliers. The low level of support for enterprise,
Strategy for Production Forestry, the National product and market development leaves value
Protected Area Strategic Management Plan and the chain actors to operate independently, often
sub-decree on community forestry have identified missing vital opportunities for value addition
non-timber forest products as key to improving (see Box 4.1). Financing is also a challenge.
rural livelihoods. Yet the implementation of these
Box 4.1.

Potential new markets for non-timber forest products

Bamboo: India imports 2,500 tons a day.106 Estimated annual at $748 million in 2010.109 Top exporters in Asia are India,
domestic demand in Cambodia for food sticks is at least 950 Indonesia, Lao People’s Democratic Republic, Singapore,
to 1,000 tons, of which the current domestic production share Thailand and Viet Nam.
is only 10 to 15 percent.107
Forest honey: The total national market estimate is 500 tonnes,
Rattan: Viet Nam’s rattan sector was valued at $225 million with the high-value segment and tourist markets estimated at
in 2014.108 Japan is a market with continued interest in natural 55 to 75 tonnes per year, equivalent to $3.2 million per year.110
colour rattan.
Medicinal plants: China is currently the world’s largest producer,
Resin: The global market for all types of resin was valued user and exporter of medicinal and aromatic plant ingredients.111

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 80

Recommendations

Cambodia’s underdeveloped value chains for global markets. It should focus on higher-value Drawing greater benefits will
non-timber forest products undercut livelihood activities geared towards greater economic require regulatory interventions;
and income opportunities for rural people, benefits for local producers as well as improved value chain improvements that
and unsustainable production of non-timber natural resource management and human bolster community
forest products can degrade the forest resource development in rural communities. empowerment, resilience and
base. Products are not contributing to human income; and sustainable
development and ecosystem sustainability in the At the harvesting and processing stages, management of forest
ways that they could. Drawing greater benefits improvements in productivity and quality resources.
will require regulatory interventions; value could come from facilitating access to simple and
chain improvements that bolster community appropriate equipment. New products could be
empowerment, resilience and income; and developed from available materials, such as bamboo
sustainable management of forest resources. pellets used for energy and soil enrichment. Resin
with anti-fungal and anti-termite properties
Address regulatory barriers has potential in the production of paint and
cosmetics. Improving local knowledge of quality
Regulatory and governance issues are key barriers requirements can guide harvesting methods and
to greater sustainability and profitability for sorting, leading to greater competitiveness in
local producers. Policy reform could streamline domestic and international markets.
regulations and legal requirements to ensure that
commercial harvesting fully benefits community Upgrading market access and marketing depends
producers, especially in conservation areas. This on providing enterprise support programmes
could include more transparent and accessible and low-cost finance. Support strategies could
ways to secure permits and licenses. target small and/or local enterprises to facilitate
expansion into formal export markets, provide
Sustainable production should be encouraged assistance with product upgrades that add value,
through more secure property rights for local and/or aid sustainability measures to ensure
people, such as through community forestry or long-term viability. These strategies could bolster
community protected areas. This can make local the entire non-timber forest product sector, with
custodianship of resources more likely. Secure some specific market opportunities summarized
property rights will also enable local communities in Box 4.1.
to invest in long-term, higher-value production of
non-timber forest products, in a sustainable fashion. Strengthening collaboration among value chain
actors would make local producers more likely
Measures are also needed to ensure that to access the resources that they need, and
commercial production does not undermine the meet legal requirements and quality standards.
forest safety net in communities that depend Collaboration could be cultivated through new
on forest resources for food, fuel and fodder. social enterprises or cooperatives, or through
Sustainable resource management is the only way existing institutions like community forestry.
to guarantee resource availability for commercial
and customary uses in the long term. Developing collective processing centres for local
producers could facilitate the collective purchase
Improve value chains of capital-intensive equipment, and negotiation
of market access and better prices, ensuring that
This calls for new interventions in market access, value is captured at the local level.
financing for local producers and technology
development . An overarching national strategy
should be designed to boost the competitiveness
of non-timber forest products in regional and



Chapter 5

Communities and natural resource management

83 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

5. Communities and natural resource management

Continued human Continued human development in rural Sharing responsibilities
development in rural areas areas will depend in large part on the active and benefits
involvement of local communities in managing
will depend on the active shared natural resources vital to their well- CBNRM rests on the participation of local
involvement of local being. Since the 1980s, community-based people in governing common resources,113,114
communities in natural resource management (CBNRM) has typically those used by a group of people where
proliferated globally, delivering benefits to benefits diminish if each individual pursues his
managing shared natural both the environment and local livelihoods. or her own self-interest.115 The approach can offer
resources vital to their It complements centralized state-driven numerous benefits well aligned with the core
well-being conservation measures, which can otherwise be aims of human development116 and sustainable
expensive and ineffective. While approaches vary resource use.
widely, in general, they offer significant scope Fair common management requires strong
to resolve trade-offs between conservation and group trust and collaboration, as well as the
development.112 ability to exclude non-group members from
using the resource. Most CBNRM arrangements
In Cambodia, the Government and its partners entail the sharing of powers and responsibilities
have promoted CBNRM since the late 1990s, between communities and other actors, such as
including through community forestry, Government officials or private land holders.
community protected areas and community Frequently, communities use resources to meet
fisheries. The Forestry Law, the Fisheries Law and livelihood needs through activities such as
the Protected Area Law permit the customary grazing, non-timber and timber forest product
use of natural resources by local communities in collection, fishing and hunting.
the forest estate, coastal and freshwater fisheries, Resource management can be more effective
and protected areas. Ongoing Government and sustainable when CBNRM draws on deep
decentralization measures to further strengthen local knowledge of ecological conditions.117,118
the authority of local communities could bolster This has been observed in India and Nepal,
community-based management, keeping in mind where community management has been
the imperative for careful planning and execution actively pursued over a long time (see Box 5.1).
to balance benefits and challenges. Community management can also contribute
to livelihood gains, as has happened through co-
CBNRM rests on the Despite progress, CBNRM’s full contribution management of forests in China,119 joint forest
participation of local to human development has yet to be realized in management in India120 and community-based
people in governing common Cambodia. Community forestry and community rangeland management in southern African
protected areas constitute less than 15 percent of countries.121
resources total forest and protected areas, and for many
communities, for a variety of reasons, initiatives
have fallen short of their potential.

NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019 84

Box 5.1.

Community management improved forest cover in India

Since 1996, a programme in the Medak District of management and conservation. This increased ownership
India’s state of Andhra Pradesh has encouraged joint among communities, and forest cover and quality increased,
forest management with nearby villages. Forests were as illustrated in maps comparing 1996 and 2005.
demarcated, divided and allocated to nearby villages for their

Source: Saito-Jensen and Jensen 2010.

In areas high in poverty and rich in natural The participation of local communities in
resources, community management can be even natural resource management fosters local
more important to improve the livelihoods of agency, which underpins human development.
the poor, given their often high dependence on Notions of empowerment or power-sharing
natural resources for subsistence and income.122 need to be explicit,124 as well as directed towards
The role of natural resources in providing a achieving benefit-sharing that is sustainable,
safety net for the poor is globally recognized. For equitable and rooted in democratic, transparent
example, 57 percent of the “GDP of the poor” decision-making.125
in India is said to come from natural resources.123

85 NATIONAL HUMAN DEVELOPMENT REPORT CAMBODIA 2019

Design principles for successful CBNRM

Box 5.2. Community participation in natural resource who won the Nobel Prize for Economics in
management can take many forms, ranging from 2009. Ostrom challenged the inevitability of
consultations with local people on the protection “the tragedy of the commons”, which arises when
of natural resources to complete community individuals freely access common resources
ownership and management of land and other without regard for the consequences.127 She
resources.126 showed how local resource users can form
institutions and abide by local rules for collective
Many CBNRM programmes draw from the management, proposing eight principles for
ground-breaking research of Elinor Ostrom, successful management,128 as outlined in Box 5.2.

Avoiding the “tragedy of the commons”: design principles for successful CBNRM

Nobel Prize-winning economist Elinor Ostrom proposed eight • Effective monitoring systems: Communities must

principles to make the most of CBNRM. regularly monitor the condition of the resources

• Clear definitions: The boundaries of common resources under their management, as well as compliance with
and the community members who can use them must be the rules by members and external actors.

clearly defined. • Graduated sanctions: Those who violate operational

• Recognition of rights to organize: The rights of members rules should be subject to increamentally increasing
to form a collective body such as a community organization sanctions administered by local communities.

with its own operational rules must be recognized by • Conflict-resolution mechanisms: Low-cost, local

governmental authorities. arenas to resolve conflicts are ideally situated within

• Collective decision-making arrangements: Procedures community structures.

must be in place for communities and/or their management • Multiple layers of governing bodies: Where very

committees to make decisions and implement or modify large areas of resources are being governed, local

operational rules. community management may be nested within larger

• Operational rules that meet local needs and conditions: organizations, with both downward and upward
These typically take the form of resource management accountability.

plans, and need to account for local voices.

Source: Ostrom 1990.

Beyond ensuring that local people gain power who collectively manage clearly demarcated
and benefits, successful community management resources, based on agreed management rules.
largely depends on formally defined communities

Understanding common challenges

Most community management projects focus that the mere introduction of this approach does
on formal structures such as laws, policies and not necessarily lead to intended outcomes.129
institutional arrangements, including community Common challenges need to be understood and
committees and local management plans. But avoided (see Box 5.3).
experiences from around the world demonstrate