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Agenda: How has supporting MSMES to operate legally and sustainably improved forest governance and livelihoods?

Event hosted by the FAO-EU FLEGT Programme in collaboration with the European Forest Institute

Year of publication 2021

Place of publication Rome, Italy ;

Pages 1

Author FAO

Publisher FAO ;

Product type Poster, banner

Edition 1

Synopsis (short abstract) Micro, small and medium enterprises (MSMEs) play a critical role in meeting the growing demand for timber products worldwide and can support the fight against illegality by providing a source of legal, traceable timber. Equipping MSMEs with the relevant business management skills together with the knowledge and competences necessary to comply with regulations generates transformational changes which extend beyond the duration of projects. These changes not only improve legality in the timber market, but contribute to sustaining livelihoods. The webinar will explore how changes in forest-management practices generated through the support of the FAO-EU Forest Law Enforcement, Governance and Trade (FLEGT) Programme and the European Forest Institute (EFI) have increased market access, enhanced the competitiveness of MSMEs, whilst reducing their vulnerability to shifts on the international and domestic market. It will discuss the experiences of MSMEs who have benefited from FAO and EFI support and provide "food for thought” for future interventions.

Language English

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    Article
    Increasing legality compliance amongst forest sector MSMEs: creating an enabling environment for responsible forest product trade and socio-economic recovery
    XV World Forestry Congress, 2-6 May 2022
    2022
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    Micro, small and medium-sized enterprises (MSMEs) play a critical role in meeting the growing demand for forest products worldwide, with potential to contribute to responsible supply chains that combat illegal logging while promoting economic growth. However, MSMEs have been challenged by the emergence of regulated markets requiring verified legal timber, which involve more stringent regulatory compliance and additional up-front costs. Recognizing the need to ensure MSMEs can benefit from – and are not penalized by – the responsible forest trade, the FAO-EU FLEGT Programme supported 100+ projects in 20 countries between 2016 and 2021 that sought to improve MSME capacity to supply legal timber. These projects employed several strategies: • Increasing MSME legal compliance through capacity building, mentoring and technical assistance; • Formalizing MSMEs to achieve legal status and access to benefits such as credit, training programs, and labour protections. • Strengthening associations that represent MSMEs and provide technical and financial assistance; • Reducing the regulatory burden through the simplification of existing legal frameworks; and • Integrating MSMEs into responsible value chains by linking with buyers or manufacturers. The Programme analyzed the impacts of these projects to determine best practices for supporting MSMEs atscale. It was found that the formation of associations was the most impactful intervention for helping MSMEs to formalize and produce legal timber. Capacity-building efforts also must integrate business skill development with training on legality compliance. The paper discusses options for further deployment of these strategies at scale, emphasizing the importance of building an “ecosystem of support” by forming a variety of mutually supporting partnerships. This will be central to assisting MSMEs negatively impacted by COVID-19 imposed lockdowns and economic slowdown. Keywords: Illegal logging, timber trade, small and medium-sized enterprises, forest governance, responsible markets ID:3486686
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