How can forest communities in Ghana receive a fair share of the benefits from logging?

The forestry sector is important to Ghana's economy. But while logging companies make enormous profits from forests, people who live in forests rarely receive any of the benefits. Social Responsibility Agreements (SRAs) are one approach being used to encourage commercial logging companies to share their benefits.

SRAs are legalframeworks that oblige logging companies to reach agreements with forestcommunities about their conduct when working in the forests in which they live,and to share a portion of their profits of logging. Since 1997, loggingcompanies in Ghana have been legally required to establish SRAswith local communities before being granted timber rights. SRAsin Ghana also oblige companies to provide community benefits to the value offive percent of stumpage fees (the fees paid to landowners, which are aproportion of the value of the logs harvested).

Researchfrom the International Institute for Environment and Development, in the UK, alongwith the Centre for Public Interest Law, in Ghana, and the University of Ghana,examines the strengths and weaknesses of SRAs inGhana and how they have made a difference to forest communities.

Theresearch, which examined nine SRAs, illustrates thatlocal communities have received benefits in some places. Logging companies haveprovided amenities including schools, healthfacilities, water and electricity, and community centres. But in some cases,companies also make their payments directly to traditional rulers and communityleaders, which may not always reach the poorer people living in forests.

WhileSRAs have successfully benefited some communities,many challenges remain:

• Most SRAs were developed between logging companies andtraditional leaders. Although traditional leaders said they representedthe interests of their communities, often there were no consultations to getthe views of community members.
• Forestcommunities lack the capacity to monitor logging companies and check theyare fulfilling their legal obligations.
• Communitiesalso find it difficult to get information about their own rights and theactivities of logging companies, such as data about stumpage fees.
• There is noevidence to suggest that the Ghanaian government is monitoring theimplementation or enforcement of SRAs.

SRAs have many positive features, includingclear minimum standards and legal requirements, which provide a positive frameworkfor negotiations. But ensuring they are properly implemented is much harder.The logging industry has considerable political and economic power in Ghana,while forest communities have very little power in comparison.

Theresearcher recommends:

• Localgroups need to be better equipped to negotiate SRAs.Forest communities need legal assistance and training if they are toreceive the benefits to which they are entitled.
• SRAs shouldinclude mechanisms that allow broader community representation innegotiations and prevent any benefits being taken by local elites.
• Central andlocal governments must increase their efforts to monitor compliance with SRAs and take action when logging companies do notcomply.