REPUBLIC of MACEDONIA

Ministry of Agriculture, Forestry and Water Economy

draft

NATIONAL FORESTRY STRATEGY

FOR

SUSTAINABLE DEVELOPMENT

TCP/MCD/3002 (A)

Institutional development and capacity building in forestry and forest industry sub-sectors

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1 INTRODUCTION

Traditionally, the understanding of forests is considered to be their use as a resource that produces material goods, in first line timber and non-wood forest products, such as medicinal plants, plant parts, mushrooms, berries etc. Besides this, forests have many other benefits useful to society as: relaxation and recreational use by people; multiaspect protective function especially in the line of biodiversity conservation and erosion control; mitigation of climatic extremes and water protection; oxygen production and quality improvement of the environment. Over the last decade, the role of forests in the fixation of carbon oxides has grown importance with the reduction of greenhouse gasses. But these significant and very important functions of forests are in correlation with their condition and structure, area and quality.

The economic, social and ecological functions of forests are of significant importance to the sustainable development of society and for improving the quality of life, especially in rural and mountain areas.

Based on these numerous useful functions of forests, Republic of Macedonia perceives forests as part of national treasure/heritage. The Constitution of the Republic of Macedonia affirms this: "All the natural resources of the Republic of Macedonia, the flora and fauna, amenities in common use, as well as the objects and buildings of particular cultural and historical value determined by law, are amenities of common interest for the Republic and enjoy particular protection."

In the initial years of independence, Republic of Macedonia got into a difficult time of transition when the reconstruction of the economical and political system had to be done quickly and with it the economy. The period of transition was additionally burdened by the complex social and economic situation.

A number of negative changes in the development of the whole society and the economy have had their impact on the forest sector as well. In this ten year period many problems and circumstances brought the forestry in a bad financial state that resulted with stagnation and backdroping of the forestry sector.

The objective conditions now impose the necessity for creating an effective system for multipurpose management of the forests and the development of a modern forest industry with high standards. 

The formulation of a document with a long-term policy and strategy for the development of the Macedonian Forestry imposes a primary objective. a reflection of all contemporary trends of the world forestry, but at the same time to be given methods for solution of the numerous problems in the Macedonian forestry in correlation of the demands of the sector, its significance to the sustainable development of the Republic of Macedonia and the intension to be a full member of the European Union in near future.

In response of that need in February 2005, the Government of Macedonia launched a process of formulating a National Forestry Policy and Strategy (NFPS). The process is based on world recognized principles, inputs from experts as well as all relevant stakeholder groups and society as a whole. It sets the stage for all major decisions concerning the sector for the next 20 years.

2 PREAMBULE

Recognizing the importance of the forest resources as integral part of the Macedonian society in economical, social and cultural aspect;

Recognizing the contribution of the forestry in the economy, culture and social issues, protection of the environment and the nature;

Emphasizing the importance of the sustainable management of forest resources as a method that takes into account the forest eco-system (applied ecosystem approach in forestry);

Emphasizing the importance of protection of the forests for the maintenance of stabile and healthy ecosystem;

Acknowledging the contribution of the forestry to the development of the rural areas, employment of the population from the rural areas;

Conscious of the dissatisfactory state of forests that is characterized with high proportion of forests with low quality, insufficient care, protection and tender of forests, low proportion of high quality and high stem natural forests

Conscious that the actual level of the production-technological process in forestry, due to technical-technological backwardness, inappropriate organizational structure and insufficiently developed forest road network, makes forest management difficult;

Noting that the management in private forests is characterized by a poor state and fragmented holdings, and the fact that the State intends to participate in the stimulation of the private sector development, aiming at the implementation of the goals of sustainable development;

Addressing the existing threats to sustainable forest management – increasing problems with economic viability of forest management, illegal logging, forest fires, threat to biodiversity in managed productive forests;

Aware that the public enterprises for state forest management is in a condition of inefficient work;

Taking into account that wood-processing industry is still unable to participate adequately in the development of the forestry sector;

Appreciating especially the significance of the implementation of all the adopted commitments, as well as the significance of international cooperation in the development of the forestry sector;

Recalling that the forest policy as a sectoral policy is a component of the total state policy of sustainable development of our country, which will provide the framework for a more detailed planning within the forestry sector;

Adopts this policy for development of the forestry which planning and implementation is based on the following principles:

• Conformity with National development objectives;
• Consistency with national policies and legislation;
• Wide participation;
• Socio-economic foundaton;
• Cultural and traditional heritage;
• Consistency/agreement with international commitments on forestry;
• Inter-sectoral approach;
• Increasing public awareness.
  

General Goals

The aim of the Government is to ensure sustainable management of forests in a way that maintains now and in the future their relevant economical, social and ecological functions and to provide products and services for improving the quality of life of all citizens.

To maintain and enhance economic viability forest sector in favor of overall national development the Government will:

·        Provide the regulatory, institutional and economic frameworks for the implementation of sustainable forest management;

·        Ensure the permanent financial mechanisms to improve the status of forests and the development of the forestry sector.

The main directions of the National Policy are:

1. Increasing, improvement of the quality of the forests in accordance with the Physical Plan of the Republic of Macedonia.
2. Multifunctional forest management and sustainable development of economically viable forestry, in accordance with the Forest Strategy of the European Union (European Commission, Forestry Strategy, 1998)
3. Complement valorization of the multifunctional usages and the social functions as integral part of the overall evaluation of the sectoral development strategy.
4. Defining the conditions for identification of the national and international funds for sectoral development support.
5. Harmonization of the forestry legislation with the national interests and international commitments.

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3 ROLE OF FORESTRY SECTOR IN SOLVING THE ECONOMIC AND SOCIAL ISSUES

 3.1 Forest resources

3.1.1 Wood

The total forest land in the Republic of Macedonia is 11,596km² (1,159,600ha) out of which forests are 947,653ha. The total wood mass is 74,343,000m³, and the total annual increment is 1,830,000m³ with average annual increment on one hectare is 2.02m³.

90.14% of the total area is state owned forest, while their part of the total wood mass is 92.2%. Private owned forests are 9.86% (94146ha) of the total forest area, and their portion of the total wood mass is 7.8%.

Out of the total forest and forest land area, 8% are not planned.

Forestry in Macedonia is an economy branch that participates in the Gross National Product with 0.3 - 0.5%, but if the multifunctional uses are valorized, the contribution will be bigger.

The contribution of the forest industry (primary and secondary wood processing, furniture, paper and celluloses...) is 2.5 - 3%.

The planned annual available cut in the Republic in Macedonia in the last 10 years is about 1,300,000m³, out of which it is used around 70%. From the produced special forest products, 80 to 85% is firewood.

Forests in the Republic of Macedonia are characterized in very rich biodiversity. Macedonia has significant non-timber forest resources: medicinal plants, mushrooms, forest fruits etc. and diverse game. The importance of forests is emphasized by the fact that the main part of the territory of the protected areas in this country are under forest.

Some of the main threats and problems in forest management and governance are: illegal logging that takes huge proportions, other illegal activities, forest fires which have affected nearly 100 000 ha for the last 10 years, climate changes trough the process of drying of the forests, insect calamities[i] and diseases. All these lead to enormous economic and environmental losses to the sector.

General Goal

Increasing the areas of forests and improvement of their structure and quality based on sustainable forest management (SFM), in oredr to improve the contribution of Forestry to the national economy as well as social development of the rural areas, ensuring renewable resources and protection of the local and global environment.

1. Encouraging the activities and providing assistance for the increase of the reforestation and afforestation with adapted tree species in accordance with the global regionalization and local conditions, including regeneration of degraded forests, planting forests on uncultivated and poor-quality soils as well as other non-used land areas;
2. Enforcing tending activities and thinnings especially in young forests, as well as regeneration of degraded forests, speeding up of the conversion of coppice forest into high forests and reconstruction of degraded forests;
3. Increasing the access of forests trough road construction using environmental acceptable methods;
4. Taking measures for protection and conservation of the natural forest genetic resources trough:
   ·        Identification and evaluation of the natural forest gene-fund[j];
   ·        Selection of seed orchards and "plus trees" from economically valuable forest tree species.
5. Taking measures to enhance the health forest condition trough removal or decrease of negative impact factors, and ensuring stabile forest ecosystem:
   ·        Strengthening the capacities of the State Forestry and Hunting Inspectorate and the Forestry Police in the Ministry of Agriculture, Forestry and Water Economy and the centre for Diagnostic-Prognostic-Reporting-Service of Republic of Macedonia (DPRS);
   ·        Renewal and support of the network for monitoring and control of the health condition of forests (IPC Forests);
   ·        Support of the research activities in the area of forest protection, especially those with applied usage in forestry;
6. Promoting sound use of wood and wood products from sustainably managed forests, enforcement of the Forest Law in order to protect forests from illegal activities;
7. Promoting the use of modern scientific achievements in forest technologies.

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3.1.2 Game

Formation and sustainable maintenance of game populations with proper sex and age structure that will sustain:

• reproduction of quality specimens;
• sustainable management;
• hunting tourism development.

1. Taking measures and activities to lead the game population density to planned normal one;
2. Development of conditions for improvement of the state of the domestic game, reintroduction[k] of the extinct domestic species and introduction of other game species;
3. To increase investments for improvement the trophy value of the game;
4. Improve coordination between State and NGOs, esp. Hunting associations;
5. Set up a continuously updated database for the game stocks in hunting grounds, by regions and management hunting areas;
6. The usage of the game will be organized through hunting based on profitable commercial principles.

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3.1.3 Non-wood forest products (medicinal herbs, forest fruits, fungi)

1. Development of a study (inventarization) of the natural findings, the quantities and possible capacities for harvesting and processing of the non-wood forest products;
2. To elaborate normative, institutional and economic frameworks for proper regulation of the use of Non wood forest products;
3. To promote ecologically friendly methods and practices for utilization of non-wood forest products in accordance to the sustainable management;
4. Promote and support small-scale enterprises based on non-wood forest products to provide employment and income to rural households.

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3.2 Forest industry

Goals

Establishment of an effective and economically viable forest industry contributing to development of the national economy.

Measures:

1. Stimulating the investments in primary wood processing industry and furniture production to increase the capacities of the forest industry;
2. Support to the development of small- and medium-size private wood processing companies with technology/techniques allowing better competitiveness;
3. Privatization of the non-profitable and non-efficient state capacities for primary wood processing;
4. Securing continuous and stable raw material supply and employ competent management to maintain competitiveness of the industry;
5. To accelerate the international standards in the sector and promote conditions for application of the Forest Certification[l] process;
6. Strengthening cross-sectoral communication and co-operation in accordance with the open market, trough technology information exchange;
7. Promoting and implementing affordable wood biomass based energy technologies.

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4 ROLE OF THE STATE IN THE DEVELOPMENT OF THE FORESTRY SECTOR

The role of the State in the forest sector can be described in six basic functions:

Legal (forestry policy and legislation formulation);

Social (stabilizing the forestry sector, increasment of its possibilities, possibilities for new employment, revitalization of the rural areas;

Education (education and creation of technical and expert people for the needs of forestry.

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4.1 Management of state forests

General Goal

• Take the necessary economic, fiscal, financial and institutional measures to improve the effectiveness of forest management and its functioning on market conditions. Inherent in these measures is the concept of integrating the public-good functions of the forests into the market process.
• Promote Sustainable Forest Management principals and develop a system of criteria and indicators for their implementation in real forest management.

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4.1.1 Institutions and their capacity

The Government of the Republic of Macedonia administers the forests and forest lands of state ownership through the following institutions:

• Ministry of Agriculture, Forestry and Water Economy;
• Ministry of Environment and Physical Planning;
• Public Enterprise "Macedonian Forests";
• National Parks and Hunting grounds;
• Public enterprise "Jasen".

The State Inspectorate of Forestry and Hunting functions as a body within the Ministry of Agriculture, Forestry and Water Economy, controls and supervises the enforcement of the Law on Forest, Law on Hunting and all other laws and law binding acts that are in the function of forestry and hunting. The Forestry Police as a sector within the Ministry of Agriculture, Forestry and Water Economy protects the forests in accordance to the Law on Forests.

• with the forests - PE "Macedonian Forests";
• with the waters - PE "Water Economy" of the Republic of Macedonia;
• with pastures - PE "Pastures";
• with game - hunting association, PE "Macedonian Forests" or other legal entities;
• with other natural resources (stone, ore etc.) - the enterprise that gets the concessions from the state.

Thus on one area, there are several subjects with different interests and a conflict of interests arises. This means that in the Republic of Macedonia the territorial governance is not addressed well.

Goals

Create the necessary organizational structures with the adequate capacity to provide the means for the protection and management of forest resources on a sustainable basis through due consideration being given to environmental, social, cultural and economic impacts.

Measures:

1. Reorganization of the Forestry Sector and the Sector for Forest Police with establishment of a Directorate for forests with sectors and departments, with creation of an adequate governing structure of forest resources. The Directorate will be run by a director;
2. Strengthening the capacity and defining the jurisdictions of institutions responsible for forest management and those for natural resources in forest and promotion of their cooperation;
3. Fast transformation and reorganization of the PE "Macedonian Forests" due to week results of the past work;
4. Enhancing the personnel and technical equipment of the State Inspectorate for Forestry and Hunting as a body with in the Ministry;
5. Formulation of professional criteria allowing the employment of trained and professionally experienced staff;
6. Formulation of criteria for management of erosion protective forest and erosive lands;
7. Formulation of criteria for expert planning of forest activities in the forests with special function;
8. Support in establishment of associations of foresters.

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4.1.2 Forest Law Enforcement / Safeguarding

Illegal logging is a serious and longterm problem, jeopardizing sustainable forest management as well as forest value in a broader perspective. As a result to the illegal logging natural regeneration is disturbed, it creates possibilities for erosion, forest fires, diseases and pest calamities, disturbances to the water regime etc.

Goals

Forest law enforcement, governance and protection of forests and forest resources. Rising of public awareness directed at protection of forests from all violation. 

Measures:

1. Harmonization of Macedonian forestry legal regulations with the appropriate regulations of the EU and the international community;
2. Strenghtening cross-sectoral cooperation on forestry issues trough appropriate regulations;
3. To strengthen administrative and technical capacity of the State Forestry and Hunting Inspectorate and the Forestry Police in order to improve the effectiveness of their control functions in state and private forests.
   ·        Increasing the staff number of the Forestry Police;
   ·        Enhancement of the material and technical equipment of the Forestry Police and readily financing it.
4. To implement a system of measures (economic, financial, legal) to restrict corruption, illegal usage and trading of forest products and other illegal activities in forests and forest resources;
5. Increasing the level of sanctions and their efficiency in order to eliminate illegal activities in the forests;
6. Ensuring transparency in forest management, decision making, planning and implementation of field works.

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  4.1.3 Forestry Planning and Information management

Planning of all economic activities in forestry should be based on the principles of Sustainable Development 

Goals

To provide the state, private sector, the public, non-governmental organizations and international institutions with accurate and timely information on the status of forests, forest management and forest products.

Efficient exchange of information within the forestry sector and in cross-sectoral direction, public awareness raising on the value and importance of forests and forestry for the society, with active participation of all stakeholders.

1. To introduce a common National Forest Inventory and Monitoring Systems on forestry recourses;
2. Improve the effectiveness and quality of the system for preparation and adoption of forest management plans:
   ·        Constituting a governmental Institution and/or licensed independent institutions that will be responsible for managemnt planning in forestry and hunting grounds;

   ·        increasment of the quality of the supervisory commission for adoptation of the Special Plans for Forest Management and the Special Hunting Management Plans;
3. Provide technical and technological support to the structures and subdivisions of the forest administration for effective use of the information system;
4. Strengthening professional and technical capacity of the forestry and hunting planning institutions to develop multifunctional planning process;
5. To introduce integrated forestry information system based on Geographic Information System for the needs of Sustainable Forest Management.

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4.1.4 Financing

The forestry mainly is financed trough the sale of timber and primary wood processing. The incomes from these sales are around 90% of the total annual income.

The forestry does not get any subsidies from the state as a support nor for the sustainable management of the public functions of forests. In that sense the forestry sector lacks support from the state and can not be consolidated on its own.

Goals

To ensure adequate financial support by the state, international donations and to finance forest projects for the activities related to sustainable forest management, maintaining protective and public forest functions, safeguarding, control and biodiversity conservation enhancement.

1. To develop and implement an effective model for financing the forest sector, providing an optimum balance of state subsidies[m]  and revenues from commercial activities;
2. Renewal of the Fund for afforestation of barelands as an entity trough which barelands will be afforested, and forest fire sites will be sanated and recovered;
3. Developing a financial mechanism by the Government for adequate compensations to the owners for forest lands-use change (with or without forest cover), based on appropriate normative changes;
4. Financing forest roads construction as a part of the public road network trough the fund for public roads, in case of public interest;
5. Valorisation of the public forest functions as a basis for financing the forestry by the state;

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  4.2 Forest Ownership 

The Constitution ensures the right of forest ownership. All types of forest ownership are equal under the law. 

Cadastre and segregation of state and private ownership.

1. Completion of the cadastre for forests - Identification and delimitation of lands and forests under different ownership;
   ·        Identification and delimitation of agricultural and forest lands;
2. To restrict fragmentation of forest ownership by stimulating private forest land consolidation;

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4.3 Management of private forests 

Goals

To create an efficient system of support to private forest owners so as to meet both the personal and the general interests and to realise the goals of sustainable management using the experiences from the European Union countries.

Measures:

1. Encourage the voluntary cooperation of forest owners to develop opportunities for improving the economic viability of small-scale forest holdings;
2. Encouragement and support of forest owners' organization in the aim of strengthening their potentials in the realization of sustainable forest management, realization of their own interests and the possibility of using the means of stimulation;Support of forest owners' organisation in the aim of strengthening their potentials in the realisation of sustainable forest management;
3. To provide support to the owners for activities concerning the afforestation, regeneration, protection of the forests, their management planning and certification;
4. Creation of special plans for the private forest management;
5. Possibility for licenced forestry companies to give services in the private forests;
6. To support and establish forestry advisory services in order to ensure good forestry practices and sustainable management of private forests.

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4.4 Public awareness

For ensuring sustainable development of Macedonia’s forest resources in the public and private sectors, it is necessary to promote participation of the different structures of society at all levels in as many aspects of forestry.

To ensure transparency of the forest management process.

Measures:

1. To develop and adopt a standard procedure for involving interested non-governmental organizations in different consultative processes.
2. To maintain public awareness of the value and importance of forests to society and to initiate information campaigns on the main issues concerning the management of the Macedonian forests.
    

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4.5 Education, specialization and qualification 

Goals

To enhance and support education and training system, for the sustainable management of forests, the economic development of the forestry sector and the improvement the quality of the environment at national, regional and global levels. 

Measures:

1. Createing suitable conditions for the education and training of the requisite number of qualified employees with skills for the new participatory management;
2. Adaptation of the existing programs for high school and higher education in correlation with the world's modern programmes and incorporation of modalities for education, specialization and qualification in forestry. The system should be flexible and adaptable to the needs and changes of the real state of the sector;
3. Strengthen the capacity of institutions concerned with workforce safety and education as well as related research, thus contributing to the future availability of a highly qualified staff and workforce;
4. Promotion of multifunctional importance of forests in the education programmes of the young generations.

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4.6 Forestry research 

To obtain new knowledge and technologies development in forestry through strengthening capacities in the research institutions.

Measures:

1. Institutional strengthening and improving the existing research capacity in forestry, wood industry and nature protection;
2. Support for the applied research for the needs of the sector, private forest owners, small and medium enterprises and local communities;
3. Strengthen international co-operation in research and capacity building in forestry and wood industry;
4. Encourage multi-disciplinary research into the role of the social and cultural aspects of sustainable forest management in the overall goal of sustainable development;
5. Encourage and support inter-disciplinary research in order to take knowledge-based decisions on Sustainable Forest Management;
6. Support research and analysis on the potential scope of CO₂ sequestration in forests and of carbon storing in forest products;
7. Support research and monitoring activities to better understand the possible impact of climate change on forests and n their ability to reduce the impact of disasters as extreme weather events.

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4.7 Inter - sectoral and international cooperation

Goals

Establishment of appropriate cross-sectoral cooperation that will enable unlimited flow of information and joint activities at all levels. At the same time to be secured participation and linkage to all international institutions and associations in the field of forestry.

1. Establish a dialogue with other related sectors to seek joint solutions on cros-sectoral issues in policy formulation processes, governance of forest resources, development of markets and industry;
2. Develop and strengthen partnerships between governmental institutions, non-governmental organizations and private sector;
3. Joining of the Republic of Macedonia to the Ministerial Conference on the Protection of Forests in Europe;
4. To establish and strengthen international cooperation in forestry and to ensure conditions for the implementation of international agreements, conventions and resolutions on forests and related fields to which the Republic of Macedonia is a signatory;
5. To promote and mannerly facilitate external donor funding of forestry projects, especially in the fields of forest governance, climatic changes, forest protection, and small and medium size enterprises;
6. To support the country’s active participation in bodies and structures of international organisations and processes related to the forest sector.

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5 ENVIRONMETAL ASPECTS

5.1 Forest protective function

Measures:

1. Assess the effects on the environment of the potentially harmful activities in forest regions;
2. Maintain, encourage and support ecologically friendly activities and practices in forests;
3. Stimulation of the maintanance of forest protection functions - sanation of eroded and degraded lands and forests and protection of headwater areas;
4. To improve technology and utilization methods of the forest resources in order to minimize damages to the environment;
5. Research on the role of forests in energy balance issues. The results are preconditions for access to international funds for the advancement of bio fuel consumption and carbon sequestration;
6. Encourage sustainable forest management practices, taking into account the possible implementation of forestry activities under UNFCCC and Kyoto Protocol.

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  5.2 Biodiversity protection 

Goals

Conservation and restoration of the components of biological and landscape diversity of Macedonian forests, through integrating conservation objectives into forestry practices.

Measures:

1. Coordinated implementation of the adopted recognized strategies in the Republic of Macedonia and the Strategy with action plan for protection of the biological diversity in the Republic of Macedonia;
2. Introduction of Forest certification;
3. Analyse of the state of the protected forest networks and its development;
4. Based on the general interests, identify the most favourable form of management of protected areas, with the obligatory participation of the local communities and forest owners;
5. Promote the restoration of forest biodiversity in degraded forests, plantations, and enhance incentives to promote natural regeneration and regeneration with native species and provenances;
6. To implement “ex-situ” and “in-situ” conservation, preservation and improvement of the gene pool of forest trees;
7. To increase funds granted by the state budget for activities linked with biodiversity conservation in protected areas;
8. Inventarization of protected areas of III and IV category in the framework of the economy forests;
9. Establishing cooperation with the citizens associations for joint activities in the field of biodiversity protection and the environment;
10. Promote forest management and landscape planning practices that are specifically suited to the protection of the environment.

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6 SOCIAL ASPECTS

6.1 Contribution of the forestry to employment creation, livelihoods and poverty reduction

About 6,000 people are directly employed by the forestry and forest industry sub-sectors. The forestry sector indirectly provides job opportunities to many more people through multiple effects of production. 

Goals

Encouragement of the economical development and creation of employment.

1. Support of development of small businesses on local level especially for services in forestry, non wood products and wood processing capcities which will enable development of rural areas;

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6.2 Input in Rural development 

Goals

Create opportunity for undisturbed economical development of rural areas and affirmation of the tourist-recreational function of the forest trough sustainable development of forestry.

Measures:

1. Undertake an analysis of the forest tourist resources on a local and regional level;
2. Promote and support local business initiatives for development of different forms of tourism;
3. To identify and promote investments, which could favor rational use of the existing potential (collaboration with tourist agencies, training, and advertisement, infrastructure development etc.) for rural development.

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7 TRANSFORAMTION OF THE FORESTRY POLICY INTO ACTION

The key elements of the support to the forest policy implementation are:

1. Strategic planning
2. Investments in the sector
3. Co-ordination
4. Institutional strengthening
5. Forestry legislation
6. International co-operation
7. Monitoring and evaluation

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7.1 Strategic Planning

The National Forestry Strategy is the framework for the transformation of the Forest Policy into action.  It presents the short-term, medium-term and long-term objectives and Strategies for individual fields and regions where key issues should be resolved by identification of priorities.

The Strategy will identify actions to be taken to reach the objectives, the responsible institutions for implementation and support, the financial resources to be allocated and the time period for the action. All these activities will be managed through the appropriate action plans elaborated by a transparent and participatory process.  

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7.2 Investments in the Sector

Forest Policy implementation requires significant financial and human resources.

The Government will provide favourable conditions for the investments in public and private forestry sectors.

The Government will create conditions for continuous and stable investments in the forestry sector through the process of realisation of the National Forestry Strategy.

Planned investments require co-ordination between private and state sectors, international and national donors:

Private sector: Creating the favourable climate for investments in the private sector. This includes the financial facilities, removal of market barriers, amendments to regulations on the change of forest land use, or similar form of forestry financing, and the development of the more transparent and reliable administrative and regulatory system. Thus, will be enabled higher private investments in the market oriented forestry.

State sector: The Strategy of investment in the state sector will be based on the economic value of forest resources which is based on the analysis of different effects of income and expenditure in forestry work.

Renewal of the Fund for Afforestation will be one of the major instruments for providing investments for the afforestation of barelands, eroded lands and forest fire sites.

The improvement of law enforcement will decrease the negative impact on wood markets and increase the income for the sector that will ensure larger reinvestments in forestry. In the framework of the National Forestry Strategy methods to resolve the above issues will be elaborated. It should answer the question how to finance sustainably the forestry sector.

Development partners: The Government will co-ordinate with the national and international donors concerning the mechanisms of financial support to the National Forestry strategy.

International financial assistance: Other sources of financing the sectoral development will also be activated, including international funds for the support to biodiversity conservation, protective functions of forests and for carbon sequestration.

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7.3 Co-ordination

Ministries which impact on the forest sector are obliged to include the Macedonian Forest Policy and Strategy in their decision making processes.

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7.4 Institutional Strengthening

The institutional framework of the forestry sector will be strengthened to implement the forest policy.

The Government will provide support to the PE "Macedonian Forests" for forest management by: better co-ordination, new partnerships, explanation of their role and responsibility and improved legal regulations. The Government will assist its restructuring, in order the increase the authority, forest management quality that will result in enhancement of the financial stability. The enterprises should be profitable and market oriented in regards to basic criteria for Sustainable Forest Management.

Their role is reflected in the following:

• encourage the local population,
• strengthen the democratic society,
• support the active participation in forest management at the local level,
• support the consultancy services,
• ensure the incorporation of the issues at the local level in the development processes at the national level,
• active exchange and publication of information.

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7.5 Forestry Legislation

The Government will analyse and revise the legal framework of the forestry sector.

The Government will secure legal framework for the implementation of the Forest Policy and the National Forest Strategy.

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7.6 International Co-operation

The Government will participate in the development and implementation of international commitments and agreements.

• Macedonia is a signatory to a number of international agreements which affect the forestry sector. The Government will meet its commitments to these agreements by the national legislation and by the implementation of activities.

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7.7 Monitoring and Evaluation of the Sector

The implementation of Forest Policy will be regularly monitored and evaluated.

The implementation effect will be monitored and compared by the following categories:

• sustainable use of resources,
• maintenance of vital environmental functions and biodiversity conservation,
• economic growth in the field of business related to forests and forestry,
• higher standard of rural and urban population depending on forests,
• visible application of taken international commitments.

All stakeholders, and not just the Government of the Republic of Macedonia and the Ministry of Agriculture, Forestry Water Economy, have a role to play in the implementation of the National Strategy for the Development of Forestry and a responsibility to contribute to its success through active participation and collaboration.

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1 forest - land covered with forest tree and shrub species, as well as forest bare lands and medows, forest roads, forest nurseries and other areas that are closely connected to forests. (Law on forests, 1997g., article 3).