QUANG NAM — Initiatives giving locals greater authority over managing and protecting nearby natural forests are paying dividends in a rural community near the southern city of Da Nang.

Last year’s decision by provincial authorities to transfer more responsibility for natural resource management to residents of Tong Coi Hamlet in Ba Commune has reduced illegal logging and raised incomes.

Residents of this small community are proud of the pristine forests surrounding their community. Since forest protection duties were devolved to locals more than a year ago, illegal logging has been significantly reduced in the area.

Tong Coi’s forests were previously managed and protected by provincial forest rangers and authorised loggers. Despite earlier protection efforts, local forests were still illegally exploited. It was discovered that the majority of illegal loggers were actually residents of Tong Coi Hamlet.

"The hamlet has 125 farmers, most of which engage in illegal logging to supplement their incomes," said Nguyen Thanh Thien, deputy chairman of Ba Commune’s People’s Committee. Those short of money often illegally fell forests and transport timber out of the area.

Given the increasing severity of illegal logging, provincial authorities chose to undertake a fresh strategy in late 2003, which involved giving Tong Coi Hamlet residents more forest management and protection responsibilities.

Under a trial approach, locals were given land-use certificates involving 350 ha of natural and 81ha of productive forest. Forest land-use certificates were distributed among two groups of locals, with natural and productive forest land being allotted to households and protected forest land being allotted to conservation teams comprising numerous residents.

The issuance of land-use certificates to local households and farmers provided them with a sufficiently strong incentive to properly manage and adequately protect their land.

According to the plan, conservation teams appointed representatives to oversee their collective management of protected forest areas. They also selected 16 members to serve as informal forest rangers that monitor, guard, and patrol the protected forest area.

In 2004, only 11 illegal logging incidents were recorded, as residents who previously engaged in illegal logging have greater incentives to protect their portion of the forest and greater disincentives to damage that of their neighbours’ as a result of the land-use certificate issuance.

Additional forest protection benefits indirectly result from incentives created by the introduction of land-use certificates. For example, given their past history of illegal logging activities as well as their familiarity with the terrain, locals clearly know when forest areas have been violated.

"Residents are now able to realise the direct benefits of forest conservation," said hamlet chief Nguyen Van Dung.

The land-use certificates provide further economic benefits to the local community as they can serve as collateral for investment loans. Farmers can then use the financing to buy seeds and cattle, thus increasing production and improving their standard of living.

Each family can use their certificate to obtain a loan of about VND8million (US$500) to buy cattle and other productive assets. While ethnic minorities are exempted from loan interests, others are required to pay only 50 per cent of these interests. To date, 72 families in the hamlet have used their loans to purchase 109 cattle, of which several already have new-borns.

"I was lent VND8 million to buy two cattle and a new one has just been born," said Mac Van Len. Local residents can also use their forest plots to harvest honey and small-scale timber.

While residents are pleased that they are permitted to fell their plots every five years, local authorities feel that plots can be sustainably exploited for timber on an yearly basis.

Local authorities are providing further support to farmers in the form of VND100 million ($6,000) loans over a five-year period. "While policy solutions can improve the situation, provincial authorities must continue to provide feasible assistance in all forms," said Nguyen Bang, a local official.