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Published in: Environmental Management 1/2021

16-11-2020

Evaluating British Columbia’s Municipally Owned Community Forest Corporations as Governance Structures

Authors: Evelyn Pinkerton, Murray Rutherford

Published in: Environmental Management | Issue 1/2021

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Abstract

The province of British Columbia, Canada, began its community forests (CF) program by permitting a range of governance structures, both to allow flexibility and to discover the most appropriate structures for this new forestry tenure. The majority of municipalities participating in this program elected to hold their CF tenure through a separate corporation or limited-liability partnership arrangement, sometimes jointly with Indigenous communities or other parties. We consider the strengths and vulnerabilities of the most common ownership and governance structure adopted by municipalities, the municipally owned corporation (MOC), by reviewing the performance of three different MOCs against standards of democratic and effective decision-making, and the record of each of these three CFs in achieving its stated objectives. We hypothesize that ten key conditions increase the probability of success in meeting these standards and achieving goals. Our findings are also especially relevant to other governance of small-scale common pool resources situations with high-cost reporting requirements, poor regulatory oversight, and weak economies of scale. They add substance, nuance, and complexity to conditions previously identified in the co-management literature.

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Footnotes
1
The AAC is based on the Ministry’s calculation of what can be harvested from the 90% of the province’s forests which are publicly owned and leased out to licencees for timber harvesting. The majority of the AAC is allocated to a few major timber companies that own the sawmills that process the timber. The five largest licensees controlled 58.7% of the AAC in 2018 (https://​www.​for.​gov.​bc.​ca/​hth/​timber-tenures/​apportionment/​index.​htm) and 65% of the larger (over 40 million board feet) lumber milling capacity (https://​www2.​gov.​bc.​ca/​gov/​content/​industry/​forestry/​competitive-forest-industry/​forest-industry-economics/​fiber-mill-information). Control in excess of 50% is considered oligopsonistic by forest economists.
 
2
Rights of CF owners under a Community Forest Agreement (CFA) include: (a) creation of an inventory of timber supply, and conducting timber supply analysis, (b) access to lands within the boundary of the CF and withdrawal of timber from that land, subject to constraints imposed by the BC government, (c) regulation of logging activity through 5-year management plans, (d) enhancement of timber production through silvicultural techniques (replanting, thinning, etc.), (e) exclusion of outsiders from timber in the CFA area, (f) allocation of opportunities to log the CFA area to insiders, and (g) enforcement of the CF plan.
 
3
A middle-range hypothesis is so named because it is situated between a single case study with questionable generalizability (X created Y in this case) and a large-scope hypothesis that is stated in such general terms that it is untestable (X always creates Y). In contrast, a middle-range hypothesis suggests conditions under which X is likely to create Y and is stated in a way that enables supportive or unsupportive evidence to be assembled.
 
4
Indigenous communities in British Columbia, also termed “First Nations,” are the original inhabitants before European colonizers arrived. They are organized into over 90 political and geographic units, and usually consider participation in CFs as an interim measure in pursuing a legal claim to title to their traditionally occupied lands.
 
5
Other ownership structures for CFs in BC include nonprofit societies, cooperative associations, corporations owned solely by Indigenous communities, limited partnerships owned solely by Indigenous communities, and direct ownership of the tenure by a municipality or Indigenous community.
 
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Metadata
Title
Evaluating British Columbia’s Municipally Owned Community Forest Corporations as Governance Structures
Authors
Evelyn Pinkerton
Murray Rutherford
Publication date
16-11-2020
Publisher
Springer US
Published in
Environmental Management / Issue 1/2021
Print ISSN: 0364-152X
Electronic ISSN: 1432-1009
DOI
https://doi.org/10.1007/s00267-020-01384-4

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