Forest Supplement to Rocky Mountain Institute's Economic Renewal Guide

12 Pages·1998·0.61 MB·English

by  Rocky Mountain Institute

Forest Supplement
to Rocky Mountain Institute’s
Economic Renewal Guide
If your community’s efforts to develop a more sustainable local economy are focused on
the forest, please use the attached factor summaries to replace some or all of those on pages
142 through 148 of the Economic Renewal Guide. Also, to set the stage for your work,
please make available for your community participants, Rocky Mountain Institute’s Beyond
Timber Dependency and Northwest Policy Center’s Toward a Sustainable Region.
© Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide
Forest Resource & Production Inputs
Forests, soil, water, wildlife, grasslands, economic decline due to world markets
minerals, and air are the foundation of that imposed tough and sometimes unfair
many community economies. The harvest competition. Volatile economic and
of timber and wildlife, grazing of political events have tormented many
livestock, growth in the soil, removal of resource-based communities to the point
minerals and petroleum, use of water, and that they feel they must fight just to stay
aesthetic appreciation of the natural world alive. Unfortunately, many of them focus
(i.e., tourism) are traditional sources of on who they can blame for their troubles
jobs and income. rather than what to do to succeed in a
For many years, these resources were rapidly changing world.
carefully husbanded by rural people who Some communities have depleted their
lived and toiled with them, and understood resources to the point of exhaustion and
their workings in detail. These people will surely decline. But other creative
realized that if natural resources were communities are learning how to harvest
used unwisely, the livelihood of future their traditional natural resources
generations would be jeopardized. But sustainably, and finding new ways to use
more recently these resources have been their resources, add value to raw products,
depleted in many places, often by people develop new products, and put resources
who cared little for the communities that to work that had previously been
depended upon them. In some cases, discarded.
depletion has been so gradual, and the The wise and sustainable use of natural
effects of depletion so subtle, that even resources builds communities. The
caring people haven’t noticed that their unsustainable depletion of resources
community’s foundation was slowly but erodes and ultimately destroys those same
surely eroding. communities.
Even communities that have carefully
managed their resources have suffered
Use the following questions to help you fill out your worksheet, though not all will apply to
your community. Don’t fill out the worksheet with answers to the questions. Rather, use
them to stimulate your thinking about assets, problems and needs.
• Who owns what percent of the forest opportunities or barriers has this
in the vicinity of your community? Is created?
ownership largely private or public? • Has there been any changes over time
• What are the various ways in which in forest animal populations
the forest is used and can be used? (examples: fish and deer)? What are
Include consumptive and non the implications of these changes for
consumptive uses. forest management and the local
• What is currently harvested from the economy?
forest? • When deciding how to use the forest,
• What forest products are used what whole-ecosystem factors need to
locally? Which ones are exported? be considered? (examples:
• What changes have occurred over watersheds, fisheries, riparian zones,
time in the composition of local forest wildlife corridors)
species? What has been the effect of • Are there any practices or conditions
those changes? that might be reducing the health or
• Is the tree age-class mix uniform or productivity of the forest?
diverse • What is the value of tourism or
• What is the composition of non¬ recreation in the area?
timber species in the forest? What
Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide
• What forest resources might be used What lumber harvesting practices are
to produce new products or services? currently in use? Are any alternative
• What do local people produce for or innovative practices being used?
themselves that might be produced on Is there a source of excess heat in
a larger scale and marketed? local industry that could be used for
• Is any forest material or practice other activities (Example: green
unique to this area? houses)?
• Are there enough forest suppliers and
service centers located near the
community?
Note: You ’ll probably identify many assets, problems and needs that are not reflected in
these questions.
© Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide
Markets
As you consider forest products Value-added production is one way to
markets, follow the market chain from, tap into the forest products markets, that
harvest to production, processing, is, new businesses or expansion of
wholesale, retail, consumption, and existing businesses to further process
recycling. Think of links in this chain products that are currently shipped
might be strengthened or added. At each elsewhere. Other avenues include
link, where are opportunities for savings, producing and marketing products
new businesses, expansion of existing cooperatively; finding new market niches
businesses, increased employment. If you for unique products; and creating new
were a forest product producer, product market opportunities.
designer, advertiser, or consumer, what
opportunities would you see in this chain?
Use the following questions to help you fill out your worksheet, though not all will apply to
your community. Don 7 fill out the worksheet with answers to the questions. Rather, use
them to stimulate your thinking about local assets, problems and needs.
What forest products are produced products businesses (examples:
locally? excess heat, slash)?
Where do local producers market • Are any residents developing non¬
their products? timber forest products?
What types of building materials are • Where might someone find
available locally? Are they produced information about non-timber forest
locally? products?
In what season do local products • Are any products being produced
become available? locally from small diameter trees?
Do any locals produce or market (Example: engineered wood products)
specialty products? • What tourist opportunities exist in the
What other specialty products might area?
be produced? • Could forest products businesses be
Are there any brokers in your area? incorporated into tourism attractions?
What processed products are made in • Do any existing activities interfere
your community? with forest products development?
Are there any local producer or • How does price and quality differ
consumer cooperatives? between local and imported products?
What are the barriers to the creation • What new product or production
of cooperatives? methods have been tried that have
Do local vendors in your community failed? Why?
sell products to local businesses? • How do environmental issues affect
Where do local stores obtain their local markets? Can these issues be
forest products? solved in ways that do not affect local
What forest products businesses markets?
existed in your community in the • Might existing or new local
past? Do those skills still exist? agricultural crops or their by-products
• Do any local enterprises generate be used to make building materials,
waste products that could be used as paper, or other wood substitutes.
inputs for existing or new forest
Note: You’ll probably identify many assets, problems and needs that are not reflected in
these questions.
© Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide
Human Resources
Education and retraining of children but it’s not the only important human
and adults is crucial to community resource. Churches, schools, and civic
prosperity. It helps residents secure the clubs have facilities and volunteers for
jobs that result from economic success. It town projects; seniors, students, and
supplies business with qualified artists offer an array of skills and ideas
employees. that increase and enhance a community’s
Most development efforts focus on the options. Their perspectives are useful to
skills and energy of specialists, officials, any economic development effort. Their
and traditional leaders. Their contribution skills and grassroots view of the town are
to the community is certainly necessary vital resources for innovative projects.
Use the following questions to help you fill out your worksheet, though not all will apply to
your community. Don’t fill out the worksheet with answers to the questions. Rather, use
them to stimulate your thinking about local assets, problems and needs.
• What proportion of local residents • What sorts of people are
earn their income from forest unemployed? Are they receiving job
products? training? What skills are they
• What proportion of local government learning? What other training might
revenues results from timber benefit them?
harvesting? from non-extractive forest • What about the under-employed?
uses? Who gets the money? What are their skills? How can they
• Who in the community has special better employ their skills?
forest skills? Are their skills being • What sources of expertise are
passed on to others? available to restore and maintain the
• Are most residents working in jobs health of the forest?
that take full advantage of their skills? • How good is the match between job
• Can local skills can cut production skills and job opportunities?
time, cost, and risk of existing and • What types of jobs are hard to fill?
new ventures? Can residents fill them?
• Are there opportunities for • Do local businesses support
advancement? employee benefits (child care, health
• Who has knowledge about different insurance, maternity and paternity
ways to make money from the forest? leave)?
• Are women or minorities encouraged • Are there any human service needs
to start and own their own that are unfulfilled?
businesses? • Have the beneficiaries of human
• Are small-business training service expansions (for instance,
opportunities available at such nearby expansions of police, fire, or school
institutions as community colleges? services) paid all the costs? Or have
• Do local schools encourage potential expansion costs been by residents
entrepreneurs, support newly formed who didn’t require the expansion?
enterprises, or offer vocational
training?
Note: You ’ll probably identify many assets, problems and needs that are not reflected in
these questions.
© Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide
Governance
(Not just government' but all the ways in which the community organizes and
manages itself.)
More than any other aspect of a communities. Enthusiasm and
community, the ability of residents to commitment are maintained by the
work together determines its success. A support and acknowledgment of
community made up of creative, educated, volunteers and the encouragement of new
committed, enthusiastic, open-minded ideas and leadership. Open-mindedness
people who are willing to take calculated and risk-taking can be fostered by leaders
risks is unstoppable. It will succeed who encourage alternative points of view.
despite other major difficulties and Community decision-making is most
deficiencies. creative when it involves the broadest
Creativity requires a willingness to possible participation, careful
discuss important decisions openly, to consideration, a minimum of name-calling
question basic assumptions, and to and permanent organizations whose
consider new ways to preserve the values mission is the long-term community
and traditions that are so important to success.
Use the following questions to help you fill out your worksheet, though not all will apply to
your community. Don’t fill out the worksheet with answers to the questions. Rather, use
them to stimulate your thinking about local assets, problems and needs.
• What groups or individuals have a aren’t yet involved in the
stake in the forest’s future? community’s development, education,
(Examples: water authorities, habitat and training efforts?
advocates, tree farmers, wood workers, • What advocacy groups are active in
outdoor recreationists, hunters, your community? What are their
fishers, banks, land developers) issues? Do they cooperate?
• Is your community effective at • Are local economic development
organizing itself to get things done? If efforts focused on business
not, why? recruitment or homegrown economic
• Does your community have a development, or both?
permanent organization whose • What problems, needs, and assets
mission includes support of the long¬ does your community share with
term viability of the community and neighboring communities?
its economy. Does the organization • What public and private services are
do what its says it will do? available to help existing and new
• Does the community encourage new businesses?
leadership? How? • How do local, state or federal
• Are civic and church groups working government regulations and policies
effectively to build a stronger affect forest practices and decisions?
community? What services do they (The closer the government, the easier
provide to the community? it is to influence.)
• Do residents volunteer for community • What effect do particular local, state
projects? or federal regulations have on new or
• Does the community support existing enterprises? (Such a general
volunteers? How? statement as “too many regulations”
• What would it take to get more and is too vague to be useful.)
different people involved in • Are policy changes needed in order to
community affairs? restore and maintain the forest’s
• Are there residents—especially health?
retirees—with valuable skills who
© Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide
• What economic development efforts potential? Do they act on that
has the local or state government awareness?
undertaken? What efforts have been • What local, state, or federal incentives
initiated by other local groups? are available to wood producers
• Does your local government provide locally? (Example: power companies
ample opportunity for public buying forests to off-set carbon
participation in decision-making? emissions.)
Does public participation include the • Are there prohibitions against
formulation of decisions, or just development or road building in local
comment on decisions that are about forests.
to be made?
• Are local leaders (private and public)
aware of to forest conditions and
Note: You ’ll probably identify many assets, problems and needs that are not reflected in
these questions.
© Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide
Infrastructure
Adequate roads, water, sewer, energy In expanding towns, an emerging
services, and communications systems are concern is that tax revenues generated by
crucial to local business and residences. community expansion are often
Sound and well-maintained infrastructure insufficient to pay the costs of the public
helps keep businesses in town and attracts services (including infrastructure)
new and expanding businesses. But it demanded by it. As a result, existing
requires costly maintenance and taxpayers often unwittingly subsidize
replacement. Though some parts of a much community expansion, especially
community’s infrastructure may be the residential subdivision of unoccupied
privately owned (for example, electric land. This is because local government
utilities), most is built and maintained by spreads the costs of expansion among all
local governments and districts. Knowing taxpayers rather than charging only those
which parts of the infrastructure are most who create the costs. This is often, in
important to existing, expanding, and effect, a subsidy from the whole com¬
relocating businesses can help order munity to those responsible for the
capital improvements and maintenance expansion.
priorities.
Use the following questions to help you fill out your worksheet, though not all will apply to
your community. Don’t fill out the worksheet with answers to the questions. Rather, use
them to stimulate your thinking about local assets, problems and needs.
• What is the condition of each • Do the local governments and districts
component of your community's who provide infrastructure understand
infrastructure? the costs and revenues generated by
• How does the cost and condition of expansion?
infrastructure affect local enterprises • Is the community trying to attract
and families? business that will require the
• How do area industries get their expansion of existing services or
products to market? facilities? What are they? Who would
• What elements of the local benefit and who would pay the cost of
infrastructure benefit forest products infrastructure expansion?
industry? What infrastructure • Who uses utilities, roads, and bridges
improvements would help the most?
industry? • Should the community borrow money
• In the last five years, how has the for improvements?
community invested in its • Is expansion of existing facilities the
infrastructure? only way to maintain service, or would
• Have the beneficiaries of repair and renovation get the job
infrastructure expansions paid all the done?
costs? Or have expansion costs been • Can demand on infrastructure be
paid by residents who didn’t need reduced through efficiency
expansion? improvements?
• Are your taxes increasing to pay the • How are decisions made about
costs of someone else’s infrastructure? By whom? Does
infrastructure? Do you benefit in public participation effect these
ways that compensate for your decisions?
increased taxes? • What skills are available for
• Are there any proposed improvements infrastructure improvements
or changes to the infrastructure? (examples: construction, masonry,
electricians)?
Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide
• Can municipal workers assist in the • Which elements of the infrastructure
design and construction of new benefit the health of the forest? Which
infrastructure, instead of outside detract? What changes would improve
contractors? forest health?
• Are alternative sources of power • What local forest products are used in
available? Consider solar, geothermal, local infrastructure? (Example:
wind, water, and biomass). wooden bridges)
• Are alternative modes of • What local forest values are
transportation available (waterways, diminished by local infrastructure?
railroad, public transportation)? (Example: effect on streams and
• What facilities are available for pollinators)
business or public use (airports, • What elements of the infrastructure
railroad stations, piers, grain elevators, benefit from the health of the forest?
parking lots, greenhouses, municipal (Example: water)
building)? • If there are any proposed changes to
• What recreational events or facilities the infrastructure in or near the forest,
bring people from near and far who will benefit? Who will pay the
together? costs? Is this situation equitable?
• How do the various elements of the
local infrastructure affect the
environment?
Note: You ’ll probably identify many assets, problems and needs that are not reflected in
these questions.
© Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide
Access to Capital
The availability of money at affordable money. The people responsible for
interest rates and terms significantly writing the checks—loan officers,
effects development. Adequate seed foundation program officers, government
capital and financing enable existing agency people, investors, and private
businesses to thrive, allow new businesses donors—all want to be winners just as
to start up, and attract expanding much as anybody else. They win when
businesses from elsewhere in the region. they support winning projects. Economic
When a community keeps more money development projects, whether private,
at home, the money recirculates, public, or nonprofit, are far more likely to
increasing the local “multiplier effect.” It be winners if we’ve carefully scrutinized
creates more value, pays more wages, them and they’re enthusiastically
finances more investments, and ultimately supported by the community. They stand
creates more local economic opportunity. a much better chance of securing funding
The projects that you identify during than a project developed by one or a few
this development effort may require people.
Use the following questions to help you fill out your worksheet, though not all will apply to
your community. Don’t fill out the worksheet with answers to the questions. Rather, use
them to stimulate your thinking about local assets, problems and needs.
• What are the financial needs of local • Are private investors interested in
businesses? investing in expanding or new
• What types of business loans are businesses?
available in your community? Who • Are venture capitalists interested in
gets them? providing capital to types of business
• Are lenders and funders willing to that the community might be trying to
work on unconventional or small attract?
projects? • What institutions provide capital?
• How could loans be structured to suit • Are area financial institutions locally
the special needs of forest products owned?
businesses? • Are existing financial institutions
• What types of businesses tend to convenient?
receive loans? Which do not? Are • What incentives do local banks offer
they starting up, expanding, or (free checking, community
relocating? reinvestment accounts)?
• Are loan terms and rates better or • Is there a local credit union? How do
worse here than other places? members benefit?
• Is capital available for business start¬ • What other sources of capital exist
ups? Could these sources be used for (community loan funds, nonprofit
establishing new forest enterprises foundation, cooperatives, foreign
(forest value-added industries, investment)? What are their
tourism)? requirements?
• Does local wealth tend to stay in the • What types of barter trade take place
community or is it invested in your community? How does it help
elsewhere? small enterprises?
• In what financial instruments do local • What local, state or federal programs
people invest their money (examples: are in place to assist in finance of new
pension funds, insurance policies, businesses? Do existing businesses
stocks and bonds)? Where does the use them?
money go? Are the funds lent locally • Are there any local producer,
by the institutions that hold them? consumer or marketing cooperatives?
© Rocky Mountain Institute 1998 Supplement to Economic Renewal Guide