The State and the Development of Industrial Plantation Forest

Abstract

Development of industrial plantation forest is a form of principal-agent relationship, in which the Ministry of Forestry as a principal gives utilization permit to the entrepreneur as an agent, known as the Forest Timber Product Exploitation Permit on Planted Forest. This utilization permit obtained by the agents is operationally conducted by other parties through a cooperative agreement. The purpose of this study is to obtain an information regarding to the state position in the development of industrial plantation forest. The study was conducted in Riau Province, using the constructivist paradigm with phenomenological method. Data were obtained through in-depth interviews to selected informants. Data were also obtained from the review of documents to complement the interview. Data analysis was conducted using property rights and principal agent theories. The phenomenon of multi-chain transfer of the management rights of plantation forest that occoured in the observed companies showed that the state was unable to effectively control to the forest plantation. The study recommends that state should issue regulation to decrease or stops further transfer of the management rights of plantation forest. However, further study needs to overcome the existing over accumulation of plantation forest in a few hands.

The measurement of competitiveness of forest green food industry in Yunnan Province

“…In terms of industrial competitiveness evaluation, previous studies usually divided the development level and development potential of forestry industry into four types: "high levelhigh potential", "high level-low potential", "low level-high potential" and "low level-low potential" [26]. On this basis, the research results showed that the development potential of plantation industry was huge [27], and the production potential of forestry industry in most areas was greater than the sales potential [28]. Industrial development potential was an important index to evaluate the degree of industrial development.…”