Steven LawryResearch Director, Forests & Governance Portfolio

Tenure Risks in Forestry Supply Chains

Common drivers of tenure risk in

developing countries

Overlapping “formal” and “informal” rights

Social and political divisions on “normative” land rights principles

Weak land rights administration

Contribute to high levels of conflict

An arch-typical tenure conflict landscape

Formal state ownership of rural land, especially forested land

Customary tenure assigns use and other non-ownership rights as a social right to residents with social standing in local groups

Customary rights may have some recognition in law but state claims underlying ownership rights

Commercial investors secure concession rights directly from the state. Customary users often displaced or offered “weak” benefits as compensation for loss of customary rights

Chronic conflict associated with failure to account for local rights and interests, taking many forms: rural resistance movements, advocacy campaigns, investor reputational damage

Possible pathways to reform (I)

Resolving drivers of conflict (A)

Statutory recognition of indigenous and customary tenure rights, at status equal to state and private tenures

Here, indigenous and local communities own the land collectively. Investors deal directly with community authorities

Focus of indigenous land rights movement in Latin America

In Africa, several countries have in recent years reformed policy and laws to grant customary tenure equal statutory status: Kenya, South Sudan, and Liberia. All customary land in Botswana has been statutorily recognized since 1968

Possible pathways to reform (II)

Resolving drivers of conflict (B)

Certification and registration of individual customary parcels and common areas

Expensive in past but costs are coming down rapidly, e.g. Ethiopia and Rwanda. Potential to reduce intra-community conflict demonstrated (e.g. boundary disputes) while protecting underlying customary principles

Underlying state ownership may be retained, so not providing legal framework for direct investment in communities

Transfers of rights may not be registered, putting in doubt verification of inter-generational transfers within families

Possible pathways to reform (III)

Resolving drivers of conflict (C)

Conversion of customary rights to freehold rights

Social and economic value of customary tenure lost. Land as a social right by virtue of membership in a community especially important for the poor

Evidence of theoretical benefits of increased access to capital and investment and productivity gains mixed. Weak in some Africa cases, strong in some Asia cases

Weak land administration capacity will require large investments. Safeguards and reforms needed to inhibit corruption and protect poor right holders, women and marginalized communities

Possible pathways to reform (IV)

Some promising remedies at hand

Smallholder participation in forest product certification (e.g. Forest Stewardship Council) not dependent on land tenure reform

Investor adoption of responsible investment standards

Corporate sustainability commitments (e.g. zero-deforestation pledges) that bring small producers into value chains

Rights-based benefit sharing schemes

Land-related conflict will likely persist where corporate producers secure privileged access to state-owned land regardless of efforts to ameliorate negative impacts on local communities

Project Design and Implementation Framework