Department of Biological Science

College of Agriculture and Food Science

Visayas State University

Baybay City, Leyte

I. THE UNDERLYING PROBLEMS AND IMPACTS OF ILLEGAL LOGGING

March 28, 2018

Submitted by

Eunice, Sumatra

Keiyrnille, Tanghal

Submitted to

Mrs. Cheryl Batistel

Socio-Ecology 172

VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.
 II. TABLE OF CONTENTS

I. Title page ……………………………….. 1

II. Table of Contents ……………………………….. 2

III. Introduction ………………………………. 3-5

IV. Main parts of the term paper ……………………………….. 6-7

V. Synthesis/Conclusion ……………………………….. 8

VI. References ……………………………….. 9

VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.
 III. INTRODUCTION

Illegal logging is one of the most universal problem that the world face today. It affects
many countries that produce, export and import wood and wood products. Illegal logging is
defined as the act of transporting, purchasing, and harvesting violating the national laws. In
some developing countries illegal logging embodies over half of the timber production and
exports. The World Bank estimates that illegal logging cost billions of money annually in lost
royalties. It may kindle collusion, corruption and other crimes within the governments and
connects to the buying of weapons in regional conflicts like in Africa. Illegal logging can cause
degradation of forest ecosystems, loss of biodiversity and indirectly to deforestation and the
spread of agrarian activity in some developing countries.

The most common effect of illegal logging is its contribution to the rapid loss of primary forest.
Aside from the environmental degradation it also destabilizes the economic growth and
development. The poor and the forest-dependent people are the ones that will likely suffers
the most. It is a proven fact that illegal logging can fuel poverty and widen the gap between
the powerful and the powerless and restrict access to resources and land (Rosander, 2008).

The Impacts
Illegal logging and its associated trade can be seen as a failure of good forest governance,
one which has severe and large-scale impacts, including an undermining of economic growth,
equitable development, and environmental conservation (Kishor & Oksanen, 2006). The
World Bank acknowledges that illegal logging and the lack of appropriate forest governance
are major obstacles to alleviating poverty, developing natural resources, and protecting
environmental values and services (World Bank, 2008). The most commonly mentioned
impacts of illegal logging, in terms of economic, social, and environmental aspects, are briefly
described hereunder.

Economic Impacts
Economic development is hinder by illegal logging and related trade. The World Bank
estimates that in developing countries, illegal logging causes an annual loss of more than
US$10 billion per year from public lands alone, eight times the total global development
assistance for SFM. Another US$5 billion is estimated to be lost annually by governments due
to evaded taxes, fees, and other revenues associated with legal forestry (World Bank, 2006).
VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.
Illegal logging is also depressing the price of wood products globally (up to 16%, depending
on product type) (Lawson, 2007) thus creating an uneven playing field for legitimate forest
sector industries.

Social Impacts
It is estimated that more than 90% of the 1.2 billion people living in extreme poverty depend
on forests for some part of their livelihood (World Bank, 2007). The high number of people
dependent on the forest resources is one of the main reasons why illegal logging accompanies
negative social impacts.

Those local communities and indigenous groups who are dependent on forest resources for
their needs are most affected because their livelihood, rights, and security are threatened.
Natural forests play an important role in subsistence economy systems and livelihoods and
are more important to disadvantaged groups in the society. The problem of weak law
enforcement and corruption disproportionately adverse impact on the groups.

Environmental Impacts
Illegal logging causes degradation and loss of forests throughout the region In Indonesia
alone; some 2.8 million hectares of forests are felled illegally each year (European
Commission, 2008). Lots of forests Laws suggest adoption of sustainable practices, including
social welfare and environmental protection these services only have little value in the market
thus tend to be neglected by operators doing short-term gains through illegal forests activities.

Ecological Impacts
Several ecological impacts can be associated with illegal logging practices. These impacts
depend on how illegal logging practices are defined and where they occur. If illegal logging is
characterized as large-scale destructive logging, it can potentially lead to the conversion of
forests to grassland, depletion of plant species (e.g., tree species such as mahogany), and in
some cases depletion of animal populations that depend on the habitats being logged. If
logging illegally occurs in protected areas, important biological resources (e.g., rare plant and
animal species) may become threatened. If logging is not done according to mandated
management plans, it can potentially lead to collateral damage, whereby other tree species
and younger trees are damaged, risk of fire is increased, and potential for sustainable
harvesting of timber is lowered.
VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.
In some instances in the tropics, logging has been characterized as the initial stimulus for
road-building, which leads to greater access to primary forests. If illegal logging occurs in
protected areas, improved access to these areas through logging roads may lead to further
activities such as clear-cutting, ranching, and agricultural development in the area (Sheikh,
2008).

Socioeconomic Impacts
Illegal logging can have economic impacts in the countries where it occurs. In several
countries where illegal logging takes place, the volume of timber extracted illegally is greater
than the official harvested total. Further, illegal logging and trade are connected to other illegal
activities such as corruption, tax evasion, and money laundering. If illegal logging is prevalent
in a country, there may be a low propensity to invest. For example, illegal logging may signal
that law enforcement is lax and that corruption is prevalent.

These factors may determine long-term investment in these countries and may increase costs
for investors already involved in the country. One definition of illegal logging is extracting
timber without reporting it to government officials. Without reporting, governments cannot
assess taxes on the wood being extracted, which results in a loss of revenue for the country
(Sheikh, 2008).

IV. MAIN PARTS OF THE STUDY

Underlying Causes

1. Flawed policy and legal framework: Laws may be technically unrealistic, socially
unacceptable, inconsistent, or even conflicting with legislation in other sectors. It can also be
a problem of tenure arrangements, as forest land tenure is often unclear or discriminatory.
According to the study, illegal forest operations often result from poor or non-existent control
over resources. Security of tenure is therefore seen as one of the most important mechanisms
to ensure accountability and control of forest operations at local levels.

VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.
The most important underlying causes of unsustainable forest activities, i.e. illegal logging, are
market and government failures (Pearce & Brown, 1994). Market failure for tropical forestry
arises as a result of missing markets for environmental services and other open access public
goods (Pearce, 2000).

2. Poor implementation/enforcement capacity: The case studies indicate that many

governments lack the necessary human, financial, and managerial capacity to effectively
ensure forest law compliance. In general, when government institutions are weak, there is
lower probability for detection and thus a greater tendency to engage in illegal activities.

Effective interventions require effective institutions to implement them properly. Weak

institutions, detailed here, are more vulnerable to corruption, which inevitably undermines their
effectiveness. However, institutional weaknesses result in government failure even where
corruption is not present (Palmer, 2000).

Many different approvals are usually required in order to undertake forestry operations in
Indonesia (Sizer, 1997; McCarthy, 2000). Each time there is a requirement for an official to
issue a permit or authorisation, this creates an opportunity for a corrupt action (Tanzi, 1998),
which is further encouraged if existing forestry legislation is outdated or inadequate (WRI,
1998). Furthermore, there have been instances where government agencies issue permits
and approvals for which they do not have the authority to do so (Callister, 1999).

3. Insufficient data and information about the forest resource and illegal operations: Lack
of resource data makes it difficult to make informed decisions, and to identify and monitor
illegal acts.

4. Corruption and lack of transparency: Corruption can occur throughout the forest sector,
from the award of procurement or timber concessions, to evasion of regulations and taxes.
Reasons for corruptions vary but can include lack of accountability and transparency, failing
policies and institutions, and lack of strong and organized civil society groups.

Many, if not all, illegal operations in the forestry sector are the consequence of corruption
(FAO, 1999). Corruption operates either to allow illegal logging to occur in the first place, or to
allow many of these activities to proceed unchecked or unpunished (Callister, 1999). While
corrupt activities will almost certainly be illegal, not all illegal activities in the forest sector
VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.
require corruption in order for them to occur, although a corrupt forestry sector almost certainly
exacerbates the scale of illegal logging. Furthermore in terms of policy, corruption makes
market and government failures more difficult to reverse.

Corruption affects the formation and the objectives of forest policy, leading to government and
market failures and the creation of high levels of rent. Grand corruption ensures that rents
continue to flow to policy makers and their patrons over time. Government failure to
appropriate rents from logging send a signal to rent seekers that there is more to be gained,
resulting in illegal logging, where the rents will be higher than for legal logging10 (Pearce,
2000).

5. High demand for cheap timber: In some countries, the growing timber market often
contributes to overcapacity of the forest industry (this aspect is discussed further in the chapter
Drivers of Change, this document).

In addition, competition for what may be perceived as a ‘cheap’ resource can foster corruption,
linking back to the granting of timber concessions and the grand corruption that can occur in
this process (Callister, 1999).

V. SYNTHESIS/CONCLUSION

Based on the several causes being discussed, it could be concluded from the findings that
illegal logging is an eminent threat to nature and prominently affects to our future
environment, shelter, and livelihood. Thus, it should be improvised directly.

Since government are cheated of taxes owed on the profits made from the sale of the
lumber from which without proof of ownership or rights to log. Consequently, the act of
importing, exporting and purchasing wood products that violates the national laws should be
seriously controlled by the government authorities via strictly enforcing anti-logging laws.
They should further concentrate on forest regions and taking appropriate actions against
timber mafia. They must identify the companies who undertake logging illegally and contact
the authorities that have the power to enforce laws. Involving threats and warnings such as
“Bawal magputol ng mga puno” signs are also helpful but most likely, greed people are not
scared of those indications. If so, government should deploy police force on the military to
VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.
lay hands on illegal loggers if the situation is very desperate. So then, the loggers will end up
in jail.
Enabling the building of fences around forests is also considered a solution for it.
As mentioned earlier, poor-dependent people will likely suffer the most, given the fact that
they are considered powerless in the economy and their source of income rely on land
resources, therefore, countries should provide alternatives for them in cutting into the
rainforest to make room for food crops. Governments should help poor farmers to grow
profitable crops without destroying forests for cropland.

Illegal loggers are payed more than the beneficiaries of tree planting and forest management
jobs. The problem is that we the society pay these criminal wages.

Hitherto, the financial gains from illegal logging are most likely practiced by greed people.
They are being called that way since they cannot wait two or three years to harvest mature
trees and they don’t bother to replant trees in return.

Logging exists because of the increasing demand for timber, paper and derivative products.
Educational programs may influence of the said increase demand. Hence, those programs
should reduce the demand for furniture made from rainforest timbers. They’d rather educate
the public in recycling old furniture and wood to lessen ways of cutting trees prone to illegal
logging.

VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.
 VI. REFERENCES

European Commission, 2008.

FAO, 1999.

Hoare, A. (2015). China is Both a Major Cause and Potential Solution to Illegal Logging.

Lawson, S., & MacFaul, L. (2010). Illegal Logging and Related Trade. © The Royal Institute
of International Affairs.

Ligtenberg, J. (2017). Runoff changes due to urbanization: A review. Umea Universitet.

Knape, M. (2009).Corruption and Consequences: Illegal Logging in Southeast Asia.

University of Puget Sound Sound Ideas; Writing Excellence Award Winners.

Maohong, B. (2012). Deforestation in the Philippines, 1946–1995. Philippine studies @

Ateneo de Manila University • Loyola Heights, Quezon City • 1108 Philippines. Retrieved
from http://www.philippinestudies.net/files/journals/1/articles/3565/submission/copyedit/3565-
6234-1-CE.pdf.

Palmer, C. (2000).The extent and causes of illegal logging: an analysis of a major cause of
tropical deforestation in Indonesia. Centre for Social and Economic Research on the Global
Environment (CSERGE) Working Paper.

Persson (2003). Conclusions and Recommendations. RAP Publication. Retrieved from

www.fao.org/docrep/010/ai390e/ai390e06.htm

Ploeg, J., et., al. (2011). Illegal Logging in the Northern Sierra Madre Natural Park, the
Philippines.

Rosander, (2008). Illegal Logging: Current and Opportunities for Sida/SENSA in Southeast
Asia. Copyright Regional Community Forestry Training Center for Asia and the Pacific
(RCFTC); Swedish Environmental Secretariat for Asia (SENSA).

Sheikh, P. (2008). Illegal Logging: Background and Issues. Congressional Research

Service.

World Bank, 2007-2008.

VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.
VSU's Vision: A globally competitive university for science, technology, and environmental
conservation

VSU's Mission: Development of a highly competitive human resource, cutting-edge scientific

knowledge and innovative technologies for sustainable communities and environment.