Erasmus Mundus MSc MEDFOR Palencia, 29 January 2013 Specialization offered by the Portuguese Catholic University (Porto): Sustainable management of Mediterranean forests: an Institutional Economics approach Américo M. S. Carvalho Mendes & the UCP (Porto) team

Why this specialization? Key topics of the course contents – Key concepts – Key issues Suggestions for dissertation topics Outline

The fundamental mistake of forest management – To manage forests IS NOT, first of all, to manage trees, forest stands, or forest landscapes. Why this specializa- tion?

The fundamental mistake of forest management – To manage forests IS, first of all, to manage people who own, value and use those trees, forest stands, or forest landscapes to sustain their livelihoods. Why this specializa- tion?

This is why it is important to take into account: – the institutions (formal and informal social norms), communities and the organisations (families, firms, forest owners’ organisations, public organisations, etc.) – within which and through which – human beings – behave – In order to appropriate, to value and to use forest resources for their livelihoods. Why this specializa- tion?

KEY CONCEPTS for an Institutional Economics approach THEIR RELEVANCE for major issues specific to Mediterranean forest management Key topics in the course contents

Types of THINGS people value (GOODS and SERVICES): – The 5 dimensions of a precise definition of goods and services – Typology in terms of the mode of appropriation (degree of exclusion and degree of rivalry) Key concepts

Types of VALUES people give to things: – Not only Use and Exchange Value – But also – Symbolic exchange value – Identity value – Cognitive value – Eudemonic value Key concepts

VALUES people give to actions, intentions and personality traits (MORAL VALUES) as the internal regulators of human BEHAVIOURS Key concepts

SOCIAL NORMS (or INSTITUTIONS) as the external regulators of human behaviours: – Similarities and differences with respect to moral values – Genesis of social norms: cooperation, coordination and conflict resolution problems – Rights (human rights, property rights, etc.) Key concepts

VALUE TRANSFORMATION PROCESSES: – Market processes and non market processes – The “expansionay nature” of the market processes and the tendency to economic globalisation Key concepts

ORGANIZATIONS: – General concept of organizations – Types of organizations and their specificities: Families Firms Social economy organizations State organizations Key concepts

COMMUNITIES: – Concept of human communities – Economic relevance and economic properties of human communities Key concepts

SUSTAINABILITY AND RESILIENCE: – Concepts of sustainability and resilience – Sustainability and resilience of human organizations – Sustainability and resilience of human communities Key concepts

SOCIETY and GOVERNANCE: – Concept of human society – Concepts of governance (Weak vs. Good governance) – Agency theory approach to policy formulation and implementation (resouce availability, individual and group rationality and incentive compatibility) Key concepts

Why forest land expand or decrease in the long run? – Long run trends in forest and other land uses depend very much on the values people give to forests and on the dynamics of human societies – Do public policies (national forest policies, EU polices, etc.) play a major role in these trends? Forest land uses and market dynamics – Some forest use values also have an exchange value, but others don’t (carbon sequestration, biodiversity, landscape quality, etc.) – In Mediterranean forest non market use values are very important – How to find a “monetary valuation” and an institutional setting for “internalisation” of those non market use values? Conflicting or “multifunctional” uses of forest resources? – Agro-pastoral uses vs. “productive forest” uses – “Productive forest” uses vs. “urban” or “conservation” uses – What institutions for conflict resolution? Key issues

Forest property rights – Very wide diversity of forest property rights regimes in Mediterranean forests – Are these regimes changing? In what direction? – Forest landownership fragmentation: Is it possible to cope with small scale forest ownership in order to improve forest management? What role of forest owners’ and local development organisations? Forest risks – The high risks of forest fires in Mediterranean forests – Do these risks have mainly a “natural” origin or not? – Institutional and organisational arrangements for forest fire prevention and extinction Public policies – Forest policy failures and the fundamental mistake of forest management – Agency based approach to forest policy formulation and implementation (resouce availability, individual and group rationality and incentive compatibility) Key issues

Foundations of Social Economics Economics and Management of Social Economy Organisations Sustainable Development Governance of Mediterranean Forests Research Methods (quantitative, qualitative) Courses

Long run trends in forest and non forest land uses accross the Mediterranean countries – Description with comparable data – Analysis: main influential factors – Roles of public policies Non market use values of Mediterranean forests – Monetary valuation – Successful cases of internalisation Conflicting or “multifunctional” uses of of forest resources? – Successful and non successful cases of “multifunctional” uses – Institutional arrangements for successful “multifunctionality” Suggestions for dissertation topics

Forest property rights – Description: variety of forest property rights regimes accross Mediterranean countries – Analysis: Are these regimes changing? Where, how and why? Modes of collective organisation of forest owners and users – Description: private forest owners’ organisations, communal forests, hunters, etc. – Analysis: Do these forms of collective action have an impact on forest management? Forest fires – Role of human and social factors in forest fires in the Mediterranean countries – Institutional arrangements for forest fires prevention and extinction: Are there best practices? Are they transferable? Public policies – Implementation analysis of a forest programmme based on the agency theory framework (identification of implementation successes or failures; explanation of these implementation gaps) Suggestions for dissertation topics

THANK YOU VERY MUCH FOR YOUR ATTENTION