1. 1 Hessian Ministry of Environment, climate protection, Agriculture and Consumer Protection Decentralization and delegation in the State Forest administration from the ministry´s perspective Experiences - results - recommendations FLERMONECA - FLEG Expert Dialogue Istanbul, December 10th, 2014 Sebastian Stoll Head of Section State forest Supervisory authority over the State Forest Enterprise

2. 2 Hessian Ministry of Environment, climate protection, Agriculture and Consumer Protection 1Experiences with decentralization in Hesse 1996-2014 2Special view to decentralization of State forest fund land 3Recommendations for Central Asia Content

3. 3 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection Land use: Forestry: 42 % Agriculture: 41 % Built-up land: 7 % Traffic: 7 % Forests in Hesse: Forest cover: 895.000 ha Forest ownership: State Government: 40% Communities:35% Private Property:25% ______________ = 100 km 1Forests and Forestry in Hesse/Germany

4. 4 Hessian Ministry of Environment, climate protection, Agriculture and Consumer Protection 1Organisation of State forest administration 1996 Hessian Ministry for Agriculture, forestry and nature protection - Division for Forestry - Province Darmstadt Division of Forestry 31 Leskhoz (FMU) with 242 Ranger districts - State forest management - Services for communal and private forest owners 1 3 85 Province Gießen Division of Forestry 22 Leshkoz (FMU) with 170 Ranger districts - State forest management - Services for communal and private forest owners Province Kassel Division of Forestry 32 Leshkoz (FMU) with 252 Ranger districts - State forest management - Services for communal and private forest owners Agency for Forest Management Planning and Forest research

5. 5 Hessian Ministry of Environment, climate protection, Agriculture and Consumer Protection Directing of the 85 leshkoz by the province administration and the following instruments: - Input-oriented budget - Unflexibel budget titles (staff budget, budget for services) - Detailed planning - No incentive to exceed the budget goals - “december - fever” - Responsibility for human ressources management at the next higher administration level – Leshkoz/Province 1Directing leshkoz status in 1996

6. 6 Hessian Ministry of Environment, climate protection, Agriculture and Consumer Protection 1996: attempt in four pilot leshkoz forced by the ministry Objective: better financial results, with less control effort Implementation by: - Leshkoz took part voluntary, minimum 1 leshkoz per province. - Budget plan: A few budget titles that are exchangeable. - Negotiations on budget between ministry and leshkoz direct. - Focus in the budget plan on two numbers: financial surplus or deficit and planned timber- harvesting rate in cubicmeter in the SFF (in average 80% of the income). - Surplus in the budget could be used to 50% in fiscal year itself by the leshkoz or be transferred to a reserve for the next year. - decision about staff (reduce of staff or refill a vacancy in the leshkoz) on leshkoz level - no individual financial incentives for staff - Controlling by meetings Ministry/Province/leshkoz all 4 momths 11996 - 2000: First steps to dezentralization - 4 Pilot leshkoz

7. 7 Hessian Ministry of Environment, climate protection, Agriculture and Consumer Protection I mportant results and experiences: 1.All four leshkoz achieved better results than in the budget plan and in the former years, (up to 50% of the) surpluses were used for better equipment in the office or modern company vehicles (for example skidders). 2.A strong awareness of costs was evolved in the leshkoz. 3.Leshkoz with a high part of state forest fund (SFF) had the best financial results. 4.The motivation - team spirit in leshkoz - increased. 5.The Province forest administration was „sceptic“. 6.Staff councils looked critical to the concept. Results were used for the buliding of the SFE Hessen-Forst in 2001. 11996 - 2000: 4 Pilot leshkoz - results

8. 8 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection Basics The SFE Hessen-Forst was created by law with effect of 01.01.2001 with the objectives: Increase the economic orientation of State Forest Administration and management Improve and harmonize economic procedures and processes in the entire area of Hesse a.o. by concentration on two levels of implementation (Ministry-SFE) and transfer of operative tasks from the 3 Provinces and the Ministry to the board of directors in SFE. – centralisation on the level of the board of directors! SFE is still part of the State of Hesse: All income and expenditure is in the Budget, but SFE can transfer parts of surpluses to reserves. 12001: Launch of State Forest Enterprise „Hessen-Forst“

9. 9 Hessian Ministry of Environment, climate protection, Agriculture and Consumer Protection 1Organisation of State forest administration 2001 - 2005 - 2014 Hessian Ministry for Environment, climate protection, Agriculture and Consumer Protection - Division for Forestry - Province Division of Agriculture, Forestry and Nature Protection County Division of Agriculture, Forestry and Nature Protection State enterprise HESSEN-FORST Director General 2001: 85 Leshkoz with 664 Ranger districts 2005: 41 Leshkoz with 439 Ranger districts 1 National Park Office 1 Forest Logistics Office 1 Forest Training Center 1 Forest Seed Center Personal management Organization Finan- ces Budget IT Silviculture Timber Production Marketing Services for private and local authorities forest owners Public relations Real Estate management Agency for Forest Management planning / Nature Conservation Services Forest Research Agency (jointly operated with 3 other „Länder“) Ad- visor y boar d 1 3 26

10. 10 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection Statutes for the SFE Hessen-Forst, given by the ministry: § 7 Supervision The Ministry responsible for forestry exercises the supervision over the SFE. The Ministry is responsible for approval of the statutes of the SFE, appointment/dismissal of the Director General of the SFE, approval of annual plan and balance, decisions of State political importance There is no interference of the Ministry in the business operations of the SFE, so many tasks were transferred (decentralized) to SFE level 1Supervision over the State Forest Enterprise Hessen-Forst - delegation of tasks from the ministry

11. 11 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection Prerequesite for decentralization is the previous centralization of all forestry tasks ! By:......Centralization of all forestry tasks in one ministry or one Committee …. Subordination of a State forest agency or a SFE under one ministry or one Commitee ….. Detachment of economic forest affairs out of the public administration (province administration) ….. Subordination of a leshkoz under one agency 1Supervision over State Forest Enterprises or agencies

12. 12 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection What is important in case of decentralization to supervise and manage SFF ? - Courage to delegate SFF managing tasks from the ministry to agency. - reduce the forest-related staff in the ministry. - clear natural and financial objectives in the ministry for the SFF (examples) - clear objective in the ministry what to supervise -Self-restraint not to want to know everything better in the higher authority. - realistic budget planning - economic freedom for the agency and for the leshkoz - responsibility of the agency/leshkoz for the results, not for the processes - realistic and periodic reports on a few indicators - Participation of civil society on leshkoz level should be implemented (advisory board, local commissions) 2State forest fund (SFF) Prerequesites for decentralisation of SFF tasks from ministry to SFE or agency and from agency to leshkoz – clear objectives

13. 13 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection Instruments of decentralization – Reduction of standards and regulations and clear objectives The foundation of the SFE Hessen-Forst went along with a reduction and simplification of regulations. The SFE has to deal in SFF affairs with only few regulations of general importance with clear and measurable objectives: Guidelines for the management of State forests (2012) Principles for silviculture, forest protection and nature conservation in the State forests Guidelines for Hunting in the State forests 2Supervision over SFF from the view of a ministry

14. 14 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection 2State forest fund objectives Hessen Objectives SFF Protection and ecological Impact ( Product 2) Impact on recreation and culture; environm. Education (P 4) LaborUse for forest Owner Timber and NTFP (P 1) Protection of cycles nature biodiversity landscape wildlife water, soil climate etc. Health Recreation Adventure Arts Education Scenic beauty Labor in rural areas and humane labor conditions Income Service provision according to needs Operating result Value of the forests Solvency Conceptual values Overall Goal SFF Main Objectives SFF Maintenance and development of the ecosystem „forest“ and optimized combination of its impacts as the highest possible contribution to the environmental, economic and livelihood conditions Timber Production ( Product 1) In forest operations multiple impacts have to be considered Objectives have to be considered simultaneously In case of conflicts, the protective functions have priority

15. 15 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection Objectives of supervision Objectives: The supervision coordinates the generation of objectives for the SFE and checks the results as regards to appropriateness, economy and rightfulness. Responsible for the results is the agency level, not the leshoz level. The supervision refers to all the tasks which were transferred to the SFE especially: P 1: Timber and NTFP production in the State forest as well as biological and financial results and the conditions of the State property, P 2: Protection and rehabilitation in the State forests as well as the maintenance of the protective functions of forests in the framework of the special commitment to the public benefit 2Supervision of SFF related objectives from the view of the ministry

16. 16 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection Financial objectives to supervise The Hessian Parliament approves the annual budget plan determines the budgets for each product. Budget means: (own revenues + revenues from the state of Hesse minus costs = 0) OwnRevenue from Costs revenueThe State of Hesse 1State forest management (plan) 113 Mio. € -3110 2Environmental and recreation in the state forest 114 15 3Management of the National Park 1 5 6 4Environmental education 0 3 3 5Management of the communal forests 11 2 13 6Contract management of the private forests 1 6 7 7Authority functions 019 19 8Forest Research 0 5 5 9Nature Data management 0 3 3 127 54181 These ‚products‘ budgets are used as the basis for the controlling. 2Supervision on SFF objectives

17. 17 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection Instruments of supervision in Hessen: Ministry – SFE - Leshkoz Monthly and quarterly reports The SFE informs monthly and quarterly on important results and developments. Deviations from goals and their implications have to be justified. Example budget control SFF next slides : 2Supervision SFF objectives ministry to SFE

18. 18 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection

19. 19 Hessian Ministry of Environment, Power supply, Agriculture and Consumer Protection

20. 20 Hessian Ministry of Environment, Climate protection, Agriculture and Consumer Protection Recommendations for decentralization in Central Asia 1Clear separation of tasks on all levels, no overlapping 2small reform steps, pilot leshkoz on local level 3State forest fund: - more economic freedom for agency and leshkoz - clear standards of qualification of staff - clear and realistic financial and natural goals - control of results, not of the processes, also in the fields 3Decentralization and delegation in the State Forest administration

21. 21 Hessian Ministry of Environment, Climate protection, Agriculture and Consumer Protection Thank you for your attention !