State-Directed Wood Industry Upgrading for Forest Protection and Economic Development in the Global South: Insights From Teak Processing in the Lao PDR

Research output: Contribution to journalResearch articleContributedpeer-review

Contributors

  • Simon Benedikter - , Chair of Tropical and International Forestry (Author)
  • Somvang Phimmavong - , Ministry of Agriculture and Forestry Laos, National University of Laos (Author)
  • Douangta Bouaphavong - , National University of Laos (Author)
  • Khamfeua Sirivongs - , Ministry of Agriculture and Forestry Laos (Author)

Abstract

Asymmetric timber trade between least-developed countries with large forest resources but backward processing industries and emerging economies has led to an uneven distribution of value in international timber commodity chains. Selling their raw timber with no domestic value added contributes little to socio-economic development and is associated with high rates of deforestation. The Lao PDR has served as a raw timber frontier for advanced timber industries in neighboring countries, leading to forest loss and related environmental problems. In response, since 2015, the Lao government has adopted drastic policy measures to end forest degradation and upgrade its timber industry (e.g., log export ban). Using teak as an example, our study provides empirical ex-post evidence on the effectiveness of state-imposed timber industry upgrading policies. The study relies on expert interviews with key policy actors at national and local levels, as well as an enterprise survey and cluster analysis conducted in Xayyabouly province. These drastic policies had far-reaching implications for the structure of the timber industry and the configuration of the timber value chain and rural development.

Details

Original languageEnglish
Pages (from-to)515-540
Number of pages26
Journal The journal of environment & development : a review of international policy
Volume33
Issue number3
Publication statusPublished - Sept 2024
Peer-reviewedYes

Keywords

Sustainable Development Goals

Keywords

  • cluster analysis, log export ban, teak processing, timber, trade, wood industry policy, wood industry upgrading