17 October 2013: The Program on Forests (PROFOR) has reported on a project carried out with the World Bank and the Government of China to support sustainable forest management (SFM), livelihood security and economic viability within state forest enterprises (SFEs) in Northeast China.

The project was launched in response to continuing declines in timber productivity and increased deforestation and forest degradation as well as SFE reliance on subsidies and transfer payments. The recommendations developed through the project stress the importance of stakeholder engagement in order to balance the different services provided by forests and ensure a common vision for the future of SFEs.

Overall, the project considered the centralization of SFEs, the decentralization of responsibility to provincial governments and a combination of federal and provincial management with clearly defined responsibilities. All three options, according to the report, are likely to face challenges in implementation due to the politically divisive nature of SFE management in China and the current situation in which SFEs are also responsible for public social services. As such, the report also calls for the separation of social service delivery from the economic and business obligations of SFEs. [PROFOR Press Release] [Publication: State Forest Reform in Northeastern China – Issues and Options]