The publication represents a summary of the contributions presented at the Conference on Alternatives of Forest Business Development in the Slovak Republic held by the Conservative Institute in November 2006 in Ružomberok, Slovakia.
THE STARTING POINTS OF THE FOREST ECONOMY REFORM
by Radovan Kazda, Conservative Institute of M. R. Štefánik, Bratislava, Slovakia
The study is focused on the analysis of current governmental decisions in the management of forest economy in Slovakia. First part deals with the fundamental starting points based on the protection of private property and free market that have to be enforced in the current forest policies. Second part of the study presents a complex proposal of the starting points of the forest economy reform in the most important areas of today’s forest policies.
FOREST MANAGEMENT IN FINNISH PRIVATE FORESTS
by Marko Mäki-Hakola, Central Union of Agricultural Producers and Forest Owners (MTK), Helsinki, Finland
The majority of the forests in Finland are owned by private persons and families. Family forest owners manage and use their forests in a sustainable way and offer many products and services to the rest of society. Forestry is primarily an economic activity. The increase in Finland’s wood resources is the result of sound management of the country’s family forests. Profitability is a precondition for sustainable forestry.
INFLUENCE OF THE MARKET LIBERALIZATION ON THE DEVELOPMENT OF BUSINESS ENVIRONMENT IN WOOD PROCESSING INDUSTRY
by Ivan Kolenka, Technical University, Zvolen, Slovakia
Slovakian wood processing industry is under pressure, which has an effect on its effectiveness (survival). It is energy demanding and the increase of energy price does have a serious consequences on the increase of expenses. Same thing could be said about the trend in the development of wages. In the last year alone the rise of price of wood together with strengthening of Slovak currency has caused significant drop-off in revenues and increase of costs. That is the reason why Slovakia should protect its internal wood market.
FELLING POTENTIAL IN SLOVAK REPUBLIC
by Róbert Marušák, Czech Agricultural University, Prague, Czech Republic
The paper deals with cutting regulation and cutting possibilities in Slovakia. It consists of three parts. The first part is aimed at brief description of the history and present state of cutting regulation in Slovakia. Present state and development of main elements, which affect cutting possibilities, are described in the second part. Namely these
data are: forest area, forest categories, age structure of the forest, wood supply and increments. Environmental limits are not discussed in the paper as it is the aim of the paper of another conference participant. Development of total harvest in Slovakia since 1990 is described in the third part of the paper. On the base of actual age class distribution scenario of possible future harvest is presented as well.
ENVIRONMENT CONSERVATION: WHICH MECHANISMS CAN BE SUCCESSFUL?
by Josef Mládek, Liberální institut, Prague, Czech Republic
There is a general consensus among economists that property rights are essential for peace and prosperity in society. Moreover, the idea that secure and unrestricted ownership is crucial for efficient management of natural resources is increasingly being accepted even by governmental bodies and institutions sponsored by governments.
Foreign experience suggests, that private profit-oriented sector can provide environment protection services and outperform the governmental sector. Externalities cannot be used as a valid argument for imposing governmental regulation; instead externalities represent a challenge for entrepreneurs to search for innovative solutions. Key for the success of any private nature-conservation initiatives must be seen in removing artificial obstacles posed by state interventions. These can be often complex in their impact, difficult to identify, and
the process of deregulation may be characterized by a strong opposition form the regulatory bodies and other stakeholders.
SWOT ANALYSIS STATE-OWNERSHIP OF FORESTS
by Jiří Oliva, Czech Agricultural University, Prague, Czech Republic
The State ownership of the forests belongs to important factors of the forest policy and it is a resource of conflicts. Its position is exceptional, because it is the largest ownership, it works with big economic values and big volume of the financial resources. The report describes the main features of the ownership of the state forests, its historical evolution and by the help of the SWOT – analysis the report evaluates
up-sides and risks.
IMPACT OF STATE-OWNED FORESTS ON DEVELOPMENT OF BUSINESS ENVIRONMENT
by Roman Svitok, Miroslav Kovalčík, Jozef Tutka, National Forest Centre, Zvolen, Slovakia
Slovak state forests ownership share has expressive changes in last 85 years. Share from 20% in 1920 through 92% in 1990 into 43% in 2005. Slovak state or municipal forests share is similar to Germany, Hungary, Switzerland, Japan and USA. State forest enterprise initiated creation of private firms for forest work by selling state production means to home entrepreneurs and orders a work at them. It was done in conditions where home firms and entrepreneurs had no accessible basic capital. State forests dominant position very expressive influence business sphere in logging, silviculture and forest protection. Private firms take part over 90% in the State forest work. State forests in Slovakia, they are guarantee market stability for wood processing industry, holders appropriate wood prices and they push state forest, environmental and social policy.
RELATION BETWEEN FORESTRY AND NATURE PROTECTION
by Jaroslav Šálka, Technical University, Zvolen, Slovakia
This paper describes a relation between forestry and nature protection on the basis of economic and policy theories. The existence of nature protection as a public good and positive externality of forestry represents the economic nature of this relation. Nature protection is not a market subject so that it requires state interventions using a toll mix of forestry and environmental policy. Policy nature of this relation lays
in the redistribution conflict of interested stakeholders. The aim of forestry coalition is to generate incomes from forest while ecological coalition aims at extensive nature protection. Integration and coordination of the relevant policies with stakeholders’ participation, discussion and negotiations can be used to solve this long-term problem.
QUANTIFICATION OF COMPENSATIONS CONCERNING INDUSTRY RESTRICTIONS IN FORESTS
by Tutka Jozef, Kovalčík Miroslav, National Forest Centre, Zvolen, Slovakia
Public-beneficial interests of the state and interest groups that influence the activities of forestry subjects are defined in the work. There are characterized main groups of restrictions on the management of forests and the substance of the algorithms of the determination of reimbursement. Current state of forests allocation for the protection of natural phenomena, components and whole forest complexes are presented. The effect of applying the tools of nature protection on the financial side of forest management and use is quantified. Annual amounts of required and paid reimbursement for the restriction on the use of wood producing forest function, as it follows from the law on nature and landscape conservation and other laws, are presented.
STARTING POINTS OF DEVELOPMENT AND ECONOMICAL PROSPERITY OF SILVICULTURE
by Juraj Vanko, Union of Regional Associations of Non-State Forest Owners, Zvolen, Slovakia
Since 1989 there has not been a significant change in relationship of government towards the enterpreneurship in silviculture. This article specifies proposals of Union of Regional Associations of non-state forest owners for improvement of business environment in silviculture, oriented mostly on liberalization of market, decreasing of administrative costs a effective policy of subsidies in the area of potential use of
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