green economy and furniture value chains
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Green Economy and Furniture Value Chains
Forest Asia Summit
Jakarta, 5-6 May 2014
Herry Purnomo
Green Economy
• Advocated after Rio+20 summit in June 2012.
• ‘The Future We Want’ (UN 2012):
• Poverty eradication
• Sustainable consumption and production
• Protecting and managing natural resource development
UNEP 2011
SBY Speech for Rio+21 Summit
We know the problems
We know the solutions
We must act now!
SBY@cifor
How can research support this? • Research for Development (ACIAR) • Research for Impact (CGIAR-CRP 6) • Action Research (FORDA and CIFOR)
Why VALUE CHAINS?
• Globalized trade make fragmenting of production
– In different location worldwide
• Linking to global value chains can provide better market access
• SMEs are becoming global players
Kaplinsky and Readman (2000)
Global furniture trade
The global furniture exports were US$ 74 billion
Indonesia’s share was about 2%, Malaysia 3% and Vietnam 5%
Jepara Furniture
• 10% of Indonesia’s export - $110 million annually
• 11,981 businesses
• 0.9 million m3 wood
• $0.8 billion economy
• Women are paid less than men
Hit by global financial crisis in 2008
Reduced market, incomes and Incentive to grow trees
METHODS
• Participatory Action Research (PAR)
• On the Reflection phase we implemented Value Chain Analysis (VCA), surveys and studies including gender.
Reflec-tion
Plan-
ning
Action
Moni-
toring
Scenarios based collective action
1. Moving Up
– Small-scale producers move up to the higher stages in the value chain
2. Green Product – Voluntary and mandatory
certification
1. Small-Scale Association (collective action)
2. Collaborating Down
3. Furniture Roadmap: District regulation development
MAIN IMPACTS
Improved incomes (statistically significant)
They produced certified furniture
Better furniture governance: the association involved in decision making process and its implementation
Lessons to be learnt
• Baseline study is a key to assess impacts
• Engage policy makers since the beginning
• Value chain analysis comprehends the distribution of income and power
• Action research can make difference on the ground
• Work at policy level to sustain the impact
Preliminary study
Planted forest
Industries
Landscape
Trade and market
Furniture
Pulp and paper
Construction
AgricultureNatural forest
Retailers
Wholesalers
End consumers
Wood panels
Log
flows
Product
flows
Money
flows
Money
flows
Vertical
inequality
Horizontal inequality
Non-
vegetated
land
• Researching landscape
• Investing landscape
• Multi-stakeholder approach
Thank You
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