Significance of NTFPs in rural livelihoods

1. “Non-timber forest products (NTFPs) and rural livelihoods in Lao PDR: reducing poverty through forest development and conservation interventions”Andrew W. Ingles Significance of NTFPs in rural livelihoods Relevance of NTFPs to both biodiversity conservation and poverty reduction Evidence of livelihood benefits from the promotion of sustainable NTFP development in Lao PDR Opportunities

2. Significance in rural livelihoods: NTFP dependency NTFPs from forests, shrublands, wetlands, re-growth from shifting cultivation Food security Other non-cash inputs to Households Income generation • After rice, wild forest foods dominate the daily diet of rural people • More than 450 edible species • Provide the bulk of animal protein and micro-nutrient intake • NTFPs provide a safety net in bad times • On average, NTFP sales generate about 50% of cash income • Allows for purchases of goods and services for consumption or investment, often where there are few alternative income sources • Indirectly supports food security by funding rice purchases • Fuel wood • Medicine • Building material • Tools & handicraft • Resins & dyes • Valued at 12% of an average household budget

3. Significance in rural livelihoods: NTFP dependency … • 80% of the population have rural livelihoods • 50 - 80% of households in remote, upland areas rely on NTFPs for income generation • Poorest families and women are the most dependent on NTFPs • Economic value of NTFPs consumed per (upland) household estimated at between $398 – 525 per annum (Sekong Province) • Subsistence use of NTFPs estimated at 30 - 40% of Gross Domestic Product

4. Forest & food security: First attempt at a nationwide survey was undertaken by UN World Food Programme in 2004 • 80% of households have some dependency on forests for food • 41% of villages dependent on food from NBCA and forests within a 20 km radius • 24% of villages are dependent on forest foods but have degraded forests and are suffering food insecurity

5. Food security & forest conservation: • WFP has identified 2,482 villages that require a priority intervention in food aid as a result of declining forests (areas shaded red) • NBCAs are the cornerstone of forest conservation in Lao PDR (areas shaded green) • There is an overlap of food security concerns and forest conservation interests • A clear case exists for the promotion of sustainable use of NTFPs and a food for activity modality for identified villages in BCI sites

6. Ban Nampheng (40 households): pilot site for an NAFRI/ IUCN NTFP Project (1996- 2001) … The NTFP situation in 1996: • Poor prices from traders • collectors lacked market information • traders advanced loans against future sales • Lack of secure access rights to wild resources • No grading and processing (cardamom) • Competitive selling by bundles (bitter bamboo shoots) • Lack of credit services • Limitations on development due to heavy workloads for women

7. Rice Banks Domestication of NTFPs Marketing group & village fund Production/ processing of NTFPs Forest Land Allocation & NTFP resource management planning Paper mulberry Bitter bamboo shoots Broom grass Cardamom Rattan Sticky bark Edible bamboo grubs Benzoin NTFP Project interventions 1996 - 2001 What was done Ban Nampheng

8. Interventions by the NTFP Project Village rice banks: Replaced the need to over-exploit NTFP resources and sell too cheaply to traders because of loans Forest land allocation: Provided secure access and use rights for a defined user group, allowing for (better) harvesting rules and control Marketing groups: Collusion, knowledge of market prices, selling by weight resulted in massive increases in income (income multiplied by 5 for limited additional inputs) and generated village development funds (10% tax on sales) Cardamom grading and processing: Significant increase in incomes (quantity and quality of product increased through harvesting rules and resource management and drying and grading increased the returns) Drinking water supplies: Reduced the time spent by women and children in fetching water to free up time for participation in NTFP collections and marketing groups Women’s savings group: Provided credit for local initiatives and strengthened collaboration within villages

9. Supported by project Funded by NTFP Fund Purchased by individuals (through credit from NTFP Fund) - Rice bank (1997) - 3 clean water taps - 2 room school (1998) • Electric generator for village power supply (1999) and fuel to run it (ongoing) • Meeting room (2001) • Village food storage (2002) • Credit fund • Salary for 3 teachers • Corrugated roof for village market space • Fund balance $2,400 - 2 Dryers for mushrooms and other NTFPs (2000, 2001) - Rice mill - 2 Tractors - 1 small truck Results on livelihoods … Ban Nampheng

10. Results on livelihoods …Ban Nampheng 1996-2002 • 13 HHs graduated one wealth class 2002-2006 • 7 HHs graduated one wealth class, previous gains held, 1 HH slipped a wealth class

11. Results on livelihoods …Ban Nampheng

12. Opportunities 1. NTFPs as poverty “trap” or an “escape ladder”? In Ban Nampheng … • Proportion of cash income from NTFP sales is holding over time (from initial increase) • Significant number of households graduated from the poorest wealth class and (all but one HH) held the gain • Food security has been achieved, along with improvements in health and education • New economic activities funded by private and common NTFP funds 2. Side-ways and up-ways spread from this and other pilot sites? • Ban Nampheng is becoming very well known and receives GoL, project and privately sponsored visits to see and learn about the sustainable development that has occurred

13. Opportunities in Lao PDR 3. More than a decade of experience with NTFP interventions, mostly in the context of NBCA and surrounding forest use - creating a wealth of experience about: • How to identify, qualify and quantify the role of NTFP use in local livelihoods • How to facilitate group processes for NTFP production and marketing • How to domesticate wild NTFPs • How to develop forest management rules and regulations, focused on NTFPs, using participatory processes 4. A network exists of 60 organisations with interests in NTFPs

14. Conclusions • The BCI should: • be aware of the important role of NTFPs in rural livelihoods • recognise the significant opportunities for achieving both conservation and poverty reduction objectives by supporting the sustainable development of NTFPs • develop and support integrated efforts to achieve food security, increase cash income, and conserve forests through NTFP-related interventions • More work is required to document the impact of NTFP interventions on: • forest biodiversity • social power and equity issues THANKS