Illegal Logging and Contraband Wood

I recently read "Down in the Woods" from the March 23, 2006 edition of The Economist, which is about new strategies for curbing illegal logging in Indonesia.

The article mentions a new system for barcoding timber that was legally and sustainably harvested, making it possible to track facts such as the forest the log was taken from, the date it was cut, the size of the tree, and the log's destination. This system is part of an effort to make it easier to distinguish between legally harvested wood and illegally harvested wood, allowing sustainable logging companies to gain market share advantage and charge higher prices. In other words, the idea is to provide financial incentives for sustainable harvesting practices.

The article explains that in Indonesia, illegal harvesting -- which means over-harvesting -- is a big problem. People who don't make a lot of money can get big bucks from selling wood, and it's relatively easy to bribe officials (who are also low-paid) to overlook illegal logging or create fake permits. Many illegal harvesters don't care about the impact of unsustainable logging, because there is a significant amount of money in it for them.

This article brought up several issues that demonstrate how the deforestation in Indonesia is really an international problem and requires international action. Contributing to deforestation, and essential to its reversal are:

1) international organizations (i.e. the United Nations, WTO)
2) governments in consumer nations (i.e. the US, EU countries)
3) financiers and banks
4) consumers/businesses in the US and other developed nations
5) the Indonesian government
6) individuals/businesses in Indonesia

In other words, it's not just the illegal logging companies that are to blame. All of these above-mentioned players contribute to the problem of over-harvesting, illegal logging, and deforestation.

One example: The role of the WTO in deforestation. I was shocked to learn that countries can't require all wood entering their homeland to be certified as legally harvested, because this would go against the rules of the World Trade Organization. I found publications online that are calling for the reform of WTO rules, such that restrictions can be applied to illegal trade practices. I was surprised such restrictions are not currently allowed!

Some good news, though: Since the article was written, the US has taken measures to curb trade of illegally-harvested wood by adding regulations about domestic trade. According to an article in the Examiner, "In 2008, the U.S. government amended the Lacey Act to prohibit trade within the United States of products made from illegally harvested wood. With this amendment, the United States became the first country to ban imports of illegal wood and related products." I wonder how this sits with the WTO regulations.

UPDATES -- AND SOME GOOD NEWS
Although the article predicted lowland forests in Borneo would be gone by 2010, as far as I could tell researching it there is still hope they'll be saved. According to mongabay.com, there are still about 10,000 hectares of lowland forests, and Indonesia is taking steps to rehabilitate its forests to help meet its target of decreased greenhouse gas emissions by 2020. This summer, Indonesia promised a moratorium on deforestation.

Apparently, the illegal logging practices in Indonesia have proved unsustainable -- and the effects caught up with the loggers. CIFOR reports: " Indonesia's forestry sector is in deepening crisis. Once among the world's leaders in round wood and plywood production, today the country's logging and woodworking sectors are in steep decline. During the last three years, the export of plywood decreased by nearly 75% while the export of sawn timber products fell by nearly 50%. Production and export reductions of such magnitude have had significant economic and social impacts in terms of shrinking foreign earnings and employment loss." The same article states that China and Indonesia have established a working group on stopping illegal logging. An agreement with the EU regarding timber trade is also in the works.

But what about US business? Mongabay.com reported in 2006 that many Americans were unwittingly buying illegally, unsustainably-harvested wood from Indonesia at places like Home Depot and Lowe's. This month, Yale University reported that activists are now turning their attention on corporations -- trying to get them to stop buying and selling illegally harvested wood: "Corporations have today replaced small-scale farmers as the prime drivers of deforestation, a shift that has critical implications for conservation." The article goes on to say: "Deforestation, overfishing, and other forms of environmental degradation are now primarily the result of corporations feeding demand from international consumers."

But apparently, corporations are learning they had better change their ways; Greenpeace has raised awareness of their choices, and the pressure is on to stop supporting unsustainable logging and deforestation. Yale quotes a researcher at an Australian university saying: " Many corporations are learning that it's bad business to engage in environmentally poor practices."

It's on us now to help continue to raise awareness and urge businesses to make sustainable choices. We have been part of the problem, but we can also be part of the solution.