Lazdinis, Marius

This study focuses on the forest sectors of the three Baltic Slates - Estonia, Latvia and Lithuania. It aims to acquire summarized information on the state-of-the-art in the field of valuation of and compensation for non-market forest goods and services in the Baltic States as well as on the perceived potential developments in this field in the future. This study is a part of a larger research exercise commissioned by the European Commission and carried out in the 27 Member States of the European Union in 2008. First, based on literature review, we provide a brief overview of theoretical aspects of classification of financing mechanisms. Then, using survey we acquired information from national forestry authorities regarding the state of forest goods and services and compensation for provision of non-market forest goods and services in the Baltic States. Finally, also using survey as well as the follow-up expert interviews we learn about the potentials for marketing of non-market forest goods and services in Estonia, Latvia and Lithuania. Our study indicates that in the Baltic States, as well as in the EU overall, biodiversity protection, climate regulation, carbon sequestration, and water regulation functions of forests are viewed as the most important non-market forest goods and services and their importance is seen to be increasing. The results also show that so far there are only few well functioning mechanisms financing provision of non-market forest goods and services. In this context, the issue of valuation also receives very little attention. We conclude that despite the existing interest, it is quite unlikely that there would be a strong increase in the use of financing mechanisms for provision of non-market forest goods and services in a foreseeable future in the three Baltic States.

We analyse whether the European Community provides for articulating a common set of priorities for society and supports openness and participation in the area of forest policy at the Community level. In doing so, we review the institutional framework and, using the results of the internet-based stakeholder consultation, assess the presence of interested parties at the level of the European Community. In addition, from the same consultation we learn about the opinions of the interest groups concerning possible areas for enhancing coherence in forest governance in the European Union. The results of the study demonstrate that there is a range of possibilities for participation of different interest groups and flow of information between the European Commission and the stakeholders. However, the number of interest groups prepared to actively participate in Community-level forest and forestry-related policy- and decision-making is relatively low. We conclude that the present institutional arrangements should be sufficient for open and participatory priority setting in forest governance at the European Community level. However, based on the stakeholder consultation we also conclude that co-ordination and co-operation, and hence coherence, in forest and forestry-related policy- and decision-making at the Community level should be improved.

This paper explores policy choices made in the governance of forest resources in Lithuania during the period of 1990–2005. The present system of governance of forest resources in Lithuania is compared with a theoretical framework for good governance. In addition, the reforms in the governance model in Lithuania are placed in the context of forest governance in other countries of the region. The results of the study indicate that Lithuanian forestry has evolved from hierarchical and extreme state interventionist governance to relatively transparent and accountable governance that respects private ownership, is sensitive to the public needs and interests as well as demand and supply in the market. The results of our work have indicated that the privatization has served as the main impetus for change. On a larger scale, the reforms of the forest sector in the three Baltic States seem to have progressed in a more similar manner than compared to those in Poland, Russia, and Ukraine.

In the light of theoretical trajectories of governance, ranging from the strong state model to the "governance without government", this paper analyses institutional developments in Lithuanian forestry during the period of 1990-2005. Lithuania has re-gained independence in 1990, after the collapse of the Soviet Union. In 2004, Lithuania has become a NATO member and joined the European Union. The transition from the state dominated centrally planned economy to the market economy ruled by the democratic principles has had important implications to the forest sector. Lithuanian forestry had to accommodate all the factors related to this transition, privatization being the main impetus for change. It has transcended from being completely "state business" to a sector with a large private segment, with a large share of private forest ownership and provision of services by private companies in the management of state forests.

Economic incentive programs are increasingly promoted in the United States and Europe as a method to encourage sustainable forest management practices on privately owned lands. This paper employs spatial analysis to evaluate the effectiveness of one such program created in Illinois through passage of the Illinois Forestry Development Act (IFDA). The Act establishes economic incentives available to private landowners who develop forest management plans and/or establish tree plantings. This paper provides (1) a description of the Illinois Forestry Development Act and its associated incentive program and (2) an evaluation of the program's land enrollments in respect to their potential for improving surface water quality. In order to evaluate the legislation in terms of water quality benefits, this paper develops a novel analytical approach utilizing a geographic information system (GIS) and high-resolution digital satellite imagery to locate and characterize land parcels enrolled in the IFDA landowner assistance program. The program has done well in enrolling lands located on steep slopes and has been moderately successful at enrolling lands within environmentally impaired watersheds. There is room for improvement in enrolling lands within the riparian areas of impaired waterways. However, the ability to enroll new lands in the program is limited by the program budget.

The current state of cooperation in private forestry in Lithuania is examined with a focus on the analysis of objectives, organizational structure and the ways forest owners' cooperatives operate. A postal survey has been used as a main research instrument, the questionnaire consisting of a series of multiple-choice close-ended questions. This paper provides insights into the state forest enterprises and other private companies operating in the private forestry sector, and places forest owners' cooperatives in a broader context of the private forestry sector. A typical forest owner's cooperative in Lithuania has up to 10 members and about 20 clients to whom services are provided. The leaders of cooperatives indicate that the optimal number of clients using their services should not exceed 40. The main stated objectives of cooperatives are the provision of services to their members under the most attractive conditions, uniting members, and earning a profit for the members. These activities of cooperatives revolve around timber harvesting and trade. It is concluded that the process of cooperation of private forest owners in Lithuania is rather slow, although positive development can be observed.

To understand the forest policy and decision making processes and enable successful implementation of development and environmental conservation objectives, it is necessary to learn about the current issues and problems in the forest sector. This study focuses on forest sectors of Estonia, Latvia and Lithuania (the Baltic States). Using the in-depth interview technique, the study learns about the opinions of leading individuals (elite) in the forest sectors of the Baltic States regarding the issues of concern in the forest management of their respective countries. This study finds that the largest concentration of issues of concern in Estonia, Latvia, and Lithuania is in an area of institutional failures. Therefore, in facilitating forest development of these countries attention should be focused on the interface between policy failures and actual resource problems. The perceptions on issues of concern were found to differ between the stakeholders in general and the elite representatives.

European Union (EU) enlargement will create a significant impact oil the forest sectors of both old and new member states. In recognition of the importance of integrating national forest policies with relevant EU strategies, this study examines the forest policy networks in countries with economies in transition and, more specifically, identifies issues of concern in the forest sectors of Estonia, Latvia, and Lithuania (the Baltic States). Results front an open-ended survey show that the three countries share similar forest-sector concerns. Though the relative magnitudes of the concerns are similar, country-specific situations are emerging. A list of 22 individual highest ranking issues of concern in Estonia, Latvia, and Lithuania was compiled Main areas of concern are (in rank of importance): (1) forest legislation; (2) top level forest administration; (3) private forestry; (4) aspects of economics; (5) environmental considerations: (6) human resources, research, and education; (7) timber processing and trade; and (8) public participation.

After the break-up of the Soviet system, the divergence in forest management among Soviet republics became obvious. While the forest sectors of the Baltic States have been fundamentally changed, Russia has not been able to develop an institutional framework that would fit the prerequisites for social-ecological resilience. It is argued that sustainable development requires institutional frameworks that have the capacity to adapt and learn, and thus to treat policies as experiments that are constantly assessed and readjusted. This, however, requires a participatory approach and in this respect the Baltic States are believed to be on a more promising track. Finally, it is concluded that only to the extent that suitable institutional frameworks will be developed will social-ecological resilience be a significant feature of the natural resources management in the former communist countries.