Forest concession policy for sustainable forest management

A forest concession policy is an important instrument for achieving the goal of sustainable forest management. Such a policy which usually incorporates strategies on stumpage pricing, duration of tenure and forest management responsibility, could offer incentives or disincentives for timber concessionaires to maintain long-term forest productivity through the implementation of appropriate forest management and harvesting operations. The main objective of this paper is to discuss several pertinent issues related to current forest concession policies in tropical countries, including Malaysia, and present proposals towards improving these policies. In doing so, the paper discusses the concept of property rights with regard to forest resources, presents the state-of-the-art review of current policies in a few countries, and highlights research findings on the economic and management implications of these policies. Available information indicates that tropical logs are mostly under-priced and this can lead to excessive rate of cutting. Short duration of tenure, on the other hand, encourages "harvest and leave" policy which is detrimental to long-term forest productivity. Proposals for improving the practices are also suggested as well as their administrative and political implications.