1. Economic Globalization, Trade and Forest Transition in Asia
Shao Huijuan
Ali Rahmat

2. Paper

3. Economic Globalization
Global Market
Foreign Direct Investment (FDI)
Industrial Sector
Non-Agriculture
Policy Maker
Agriculture Sector
Import
Export
Forest Transition
Deforestation
Forest Transition Country
Deforestation Country
Import raw material or forest product
Export raw material or forest product

4. Outline
Background of deforestation, forest transition, trade and economic globalization
Current status and forest transition in Asia
Timber trade and historical change of Foreign Direct Investment (FDI) in some Asian countries
Illegal logging and its impacts
Summary

5. Deforestation and forest transition
Deforestation, clearance or clearing is the removal of a forest or stand of trees where the land is thereafter converted to a non-forest use. Examples of deforestation include conversion of forestland to farms, ranches, or urban use.
Forest transition refers to a process of forest area decline followed by forest are increase over time.

6. Trade
Trade, or commerce, involves the transfer of the ownership of goods or services, from one person or entity to another, in exchange for money, goods or services. (sell and buy something)

7. Economic globalization
Economic globalization is the increasing economic integration and interdependence of national, regional, and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital. It is broadly defined as the shrinkage of economic distances between nations, has resulted in major changes to the forest products industry.

8. Background
Deforestation is directly caused by agriculture expansion, destructive logging, infrastructure development, and forest fires. These direct causes have been in turn influenced by population growth, economic development and polices.
Economic globalization had a huge impact on politics, economies, society, and culture, and it also had a profound influence on the utilization and conservation of natural resources including forest. Economic globalization can also be linked to factors that cause deforestation directly or indirectly, but also to factors that cause forest transition.

9. Current Forest Area in Asia

10. Planted Forest in Asia

11. Loss of Forest in Asia

12. Forest Transition in Indonesia
Since the 1980s the scale of afforestation declined or remained stable, while the total export value of forest products increased rapidly during the same time.
For multinational pulp companies, forests are replaced by plantations.
The logging industries are driven by demand from China and Japan.
Agricultural development and transmigration programs moved large populations into rainforest areas.

13. Forest Transition in China and Vietnam
China and Vietnam have experienced forest transition in the 1980s and 1990s respectively.
The afforestation activities implemented widely as part of broader forest and natural resource policies are closely related with forest cover increase.
China and vietnam have a dramatic increase in the value of import of forest products.

14. Forest Transition in South Korea and Japan
South Korea and Japan experienced forest transition befores the 1980s and the precentage of forest areas remaied high and afforestration areas remained stable.
South Korea and Japan had relatively stable import value of forest products.

15. Trend in the value of trade of forest product (billions US$)
Since the last few decades, international trade has expanded rapidly because of the liberalization of foreign investments.

16. Foreign Direct Investment (FDI)
FDI is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.
The expansion of FDI is one of the most important representations of the globalization wave since 1980s.

18. Revenues in the forestry sector
Forests make a significant contribution to public revenues.
Revenues derived from forest resources are often used to finance development in general as well as forestry-related measures.
Theoretically, economic rents from forest use should be collected at each step of the timber extraction chain. Non-tax revenues include license fees and fees according to annual allowable cut, stumpage volume, felled timber volume, volume of logs transported to the log pond, volume of processed products, and volume of exported wood products.

19. ENVIRONMENT
ECONOMIC

20. Illegal logging
Illegal logging is a global problem that is both a result of and a contributing factor to poor forest governance.
It not only endangers the sustainability of the environment but threatens the rights of indigenous peoples whose lives rely on their native forestry ecosystems.
Illegal logging is collapsing the world timber market. According to Jamie Webb, the global economy losses more than 30 billion dollars annually due to illegal timber logging and trade.

21. China at Center of Illegal Timber Trade
More than 20% of China is covered by forests, and the forest area has been increasing at an average annual rate of 1.1% since China is one of the world’s largest importers, consumers and exporters of wood-based products.
Reflecting the size of its trade, China is a major conduit for illegal timber. In 2013, over 15% of imports of wood-based products were estimated to be illegal. China is a particularly important market for high-value hardwoods, in which there is significant illegal trade.
The Chinese government has taken various steps to curb the trade in illegal timber. China has also been developing a national timber legality verification system.
Bound for China...

22. Illegal logging in Indonesia
Brazil and Indonesia are the two largest deforesting countries in the world. Indonesia’s forests are large and are being lost at alarming rates, which results in Indonesia’s global warming pollution ranked as 5th largest in the world.
Illegal logging is a major contributor to the loss of Indonesia’s forests. It was estimated that 40-55% of timber logged in Indonesia is illegally sourced.
It has been estimated that the Indonesian government lost US$7 billion between 2007 and 2011 due to illegal logging and forest sector mismanagement.
Photo: An Indonesian police officer with a haul of illegal logs.
Source:

23. Japan Needs Tougher Laws to End Illegal Timber Imports
Japan is one of the world’s largest importers of tropical timber, sourcing this timber largely from neighboring countries in Asia. Recent estimates indicate 12% of Japan’s timber imports are at high risk of being illegal.
The government has been engaged on the issue of illegal logging and related trade, but its approach has been focused on voluntary measures rather than establishing legally binding requirements. The ability to exclude illegal products from Japan’s market is limited.
Japan needs to introduce laws and stricter oversight to stamp out imports of illegally logged wood.

24. Impacts of Illegal logging
Environmental impacts include the loss or degradation of forests. This can result in the loss of habitats and biodiversity. Deforestation also has implications for climate change.
Economic impacts include the loss of government revenue. The illegal trade has also depressed global timber prices by as much as 16 percent.
Social impacts of illegal logging are diverse. Illegal logging undermines the rule of law and is often associated with corruption. It may also entail a lack of recognition of the land and resource use rights of forest communities.

25. Economic Globalization
Global Market
Creation of non agriculture Job
Agriculture intensification
Rural urban migration
Forests are often burned by farmers and plantation owners.
The logging industry, driven by demand from China and Japan.
Agricultural development and transmigration programs moved large populations into rainforest areas
Foreign Direct Investment (FDI)
Import
Export
Industrial Sector
Non-Agriculture
Policy Maker
Agriculture Sector
Forest Transition
Deforestation
Forest Transition Country
Deforestation Country
Import raw material or forest product
Export raw material or forest product

26. Summary
Drivers of forest transition equally vary across different countries and regions, and also vary in different stages of a country's or region economic development.
Economic globalization had a huge impact on the utilization and conservation of forests. Asian countries show huge differences in economic growth patterns and trends in forest resource conditions, especially for FDI which is an important factor on forest transition.
Illegal logging is a global problem and the government need to take various tougher steps to curb the trade in illegal timber.