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Chinese government plan on speeding up forestry development

Posted on: Monday, 22 September 2003, 06:00 CDT

The Chinese government has released a decision on speeding the development of forestry. The development blueprint calls for building up a forestry industry based on government guidance and supervision and market competition and regulation. The forestry industry will also be further opened up to foreign and private sector investment and participation, and forestry enterprises will be encouraged to export forestry products overseas and seek new markets. The plan also covered the establishment of a legal and supervisory framework for the forestry industry, land transfers and land use rights, as well as environmental protection. The plan included measures for tackling environmental degradation, desertification and illegal logging. The plan also covered ways of mobilizing society to become more involved in forestry, for instance, tree planting and environmental awareness campaigns. It estimated that by 2010, the coverage rate of forests in China would reach more than 19 per cent, while soil erosion in major river reaches and the expansion of desert land in major sand areas would slow down. The following is the text of the report by official Chinese news agency Xinhua (New China News Agency); subheadings as carried

Beijing 10 September: Decision of the Chinese Communist Party [CCP] Central Committee and State Council on Accelerating the Development of Forestry in China

25 June 2003

Strengthening ecological construction and maintaining ecological security is a main theme common to all humanity in the 21st century. It is also an important cornerstone for sustainable social and economic development in China. In order to build a well-off society in an all-round way and accelerate socialist modernization, we have no choice but to take the road of civilized development, which means advancing production, achieving an affluent standard of living, and creating a sound ecology. We must achieve a balance between economic development, on the one hand, and population, resources, and the environment, on the other. We must achieve harmony between man and nature. Forests are a key player in the ecosystem on land and forestry is an important public-interest enterprise as well as a basic industry. Forestry is charged with the important tasks of ecological construction and the supply of forest products, so making forestry a success is profoundly significant. In order to accelerate the development of forestry, achieve the magnificent objective of keeping our mountains and rivers beautiful, and promote national economic and social development, we hereby make the following decision.

1. Intensifying forestry development necessary for sustainable economic and social development

1) China's drive to develop its forestry industry has been highly successful. Since New China was founded [in 1949], particularly since reform and opening up, the CCP Central Committee and the State Council have attached a good deal of importance to forestry work and taken a series of policy measures, thus greatly promoting forestry development. The national compulsory tree-planting movement is in full swing. What is taking shape is a situation in which society as a whole gets involved in the forestry business and everybody is doing his part to make the country green. Ecological projects such as the "Three North" [north, northwest and northeast China] shelter belts are striking successes. Other key projects launched in recent years, such as the protection of natural forests, the reforestation of former farmland, and anti-soil denudation works, have been making good progress. The ecological conditions in parts of China have improved. The protection of forests, wetlands, and wildlife and wild plant resources has been stepped up. With progress being made in the effort to adjust the structure of the forestry industry and the construction of bases for a variety of commercial forests now on the ascendancy, the forestry industry has been strengthened. Economic forests, the bamboo industry, rattan industry, the flower industry, and eco-tourism have developed rapidly. The comprehensive development of mountain areas is advancing in depth. A relatively coherent set of organizations, laws, and work systems for the cultivation, management, protection, and exploitation of forest resources has gradually come into existence. Since the founding of People's Republic of China, the forest industry has supplied a total of 5bn cu.m. of timber. To date, forest cover in China has reached 16.55 per cent and there are more planted forests in China than in any other country. Forestry has contributed mightily to national economic construction and the improvement of ecological conditions. It is playing an increasingly important role in the development of agriculture and the rural economy in the new stage, expanding urban and rural employment and boosting peasants' incomes.

2) Sustainable economic and social development urgently calls for a major transformation of Chinese forestry. In the wake of economic development, social progress, and rising living standards, the demands of society for accelerating the development of forestry and improving ecological conditions have become increasingly urgent. The place and role of forestry in economic and social development have become more and more prominent. Not only must the forest industry satisfy the needs of society for a diverse range of forest products, including timber, but it must also satisfy the need to improve ecological conditions and protect the nation's ecological security. Ecological needs have become society's No 1 demand in forestry. Forestry in China is in an important phase of transformation and transition. It is in the midst of an historic shift from being oriented towards timber production to being oriented towards ecological construction.

3) We face a daunting situation as we work to accelerate the development of forestry. Ecologically speaking, there have been some local improvements, but overall the situation in China is worsening, a trend that has not yet been reversed in a fundamental way so far. The expansion of the sand belt, the reduction of wetlands, and the decline in biodiversity continue to deteriorate. The wanton cutting of trees, the unauthorized cultivation and taking of woodland, the illegal hunting and killing of wildlife, and the illegal gathering of wild plants have not been put to an end despite repeated efforts to outlaw them. Forest fires, plant diseases, and insect pests continue to pose a serious threat to forestry. The forest management and operating systems still fail to keep up with the needs of a changing situation. The forest industry is small in size and low on scientific and technological content. Its structure is lopsided and there is a wide gap between timber supply and demand. Income growth among workers in the forestry industry and of the masses in forest regions has been slow and the development of social undertakings has been lagging. Generally speaking, China is still a country that lacks forestry resources and has a serious shortage of forestry resources overall. The general functioning of the forest ecosystem remains highly fragile, increasingly incapable of meeting social needs. The task of forestry reform and development has never been more arduous than now.

4) It is necessary to put forestry construction in an even more prominent place. In the course of building a moderately well-off society in an all-round way and pressing ahead with socialist modernization at an accelerated pace, we must emphasize and strengthen forestry work and strive for greater development in China's forestry. As we implement the strategy of sustainable development, we must give forestry an important place, make forestry the centrepiece of ecological development, and approach it as the foundation in the development of the western regions.

2. Guiding thought and basic principles behind acceleration of forestry development; major tasks

5) Guiding thought. Use Deng Xiaoping Theory and the important thinking of the "Three Representations" [Chinese: san ge dai biao: on the importance of the Communist Party in modernizing the nation representing the demands for the development of advanced social productive forces, the direction of advanced culture, and the fundamental interests of the greatest majority of the people] as the guide, implement in depth the spirit of the 16th CCP Central Committee, map out a path for sustainable forestry development based on ecological construction, establish an ecological security system featuring mainly forest cover and combining forests with grasslands, create an ecological civilized society where the mountains and rivers are beautiful, vigorously cultivate, protect, and rationally use forest resources, and achieve progress in forestry by leaps and bounds, so that forestry can better serve national economic and social development.

6) Basic Principles

Adhere to national mobilization. Everybody should get to work and society as a whole should get involved in forestry.

Insist on integrating ecological benefits with economic benefits and social benefits, while giving priority to ecological benefits.

Insist on the strict protection, vigorous development, scientific management, and sustained use of forest resources.

Insist on combining government guidance with market regulation. Adopt customized management and operations in the forestry industry.

Steadfastly respect nature and economic principles. Modify measures to suit local conditions. Devise a reasonable distribution among tall trees, shrubs, and grasses. Strive for balanced development among urban areas, rural areas, and forestry.

Persevere in using science and education to boost forestry.

Adhere to forestry management based on law.

7) Major Tasks. Successfully manage existing forests, plant new forests, do a good job in the reforestation of former farmland, optimize the structure of forestry, increase forest resources, enhance the overall functionality of the forest ecosystem, boost the effective supply of forest products, and increase the incomes of forestry workers and peasants. By 2010, China's forest cover must top 19 per cent, soil erosion in the basins of major rivers and desertification of areas affected by sandstorms will have eased, the worsening trend in the country's overall ecological conditions will have been tentatively checked, and the structure of the forestry industry will be approaching a balance. By 2020, China's foreign cover will exceed 23 per cent, ecological problems in the key regions will have been basically resolved, the country's overall ecological conditions will have improved notably, and the forestry industry will have become markedly stronger. By 2050, the forest cover will have reached and stabilized above the 26-per-cent level, a beautiful China will have become a reality, sound ecological conditions will have become self-perpetuating, the gap between the supply and demand of forest products will have become narrowed, and a relatively comprehensive forest ecosystem and a relatively developed forest industry will have come into existence.

To achieve the aforementioned objectives, we must strive to properly protect natural forests, wildlife and wild plant resources, wetlands, and ancient and famous forests. We must work hard to succeed in water-conserving afforestation, in water-and-soil- conserving afforestation, in anti-sandstorm afforestation, and in embankment protection afforestation. We must work hard to plant trees on barren hillsides that are suited for afforestation, on wasteland, in the outskirts of cities and the countryside, and along roadways and canals. We must work hard to build bases for timber forests, economic forests, firewood forests, flowers, and other commercial forest products. We must work hard to build parks with forests, urban forests, and other forests of a recreational nature. At the same time, we must accelerate the pace of the adjustment of the structure of forestry and improve the bottom line of forestry, accelerate the innovation of the forestry management system and operating mechanism, and mobilize the enthusiasm of all social quarters for developing forestry.

3. Tackle key projects and advance ecological construction

8) Work steadfastly to make the key projects in forestry construction a success. Intensify our efforts to protect natural forests, strictly control tree cutting in natural forests, and further protect, cultivate, and develop natural forest resources in the upper reaches of Chang Jiang, in the middle and lower reaches of Huang He, in Northeast China, and in Inner Mongolia. We must take effective measures to make the reforestation of former farmland and the planting of grass on such farmlands a success. We must conscientiously implement the applicable compensation policy as it applies to peasants who have taken land out of agriculture. We must properly address the long-term livelihood issues of those peasants by encouraging them to develop successor industries that have both a market demand and potential in conjunction with the adjustment of the agricultural structure and the development of niche industries. We must continue to press ahead with the "Three North" Shelter Belt Project and other projects in such key areas as the Yangtze River that are aimed at building shelter belt systems. We must modify measures to suit local conditions and build defences tailored to all cases of hazards, thus creating a variety of shelter belt systems. We must concentrate on controlling the different kinds of ecological disasters in those areas. Take effective measures against sandstorms, including projects to control the source of sandstorms in Beijing and Tianjin. We must protect and increase forest and grass cover and effectively control the danger of sandstorm affecting the capital and other major sandstorm-plagued areas by using a combination of measures: designating certain areas as off- limits protected zones, planting trees and grass, harnessing and controlling small river basins, imposing bans on grazing, practising ecological immigration, and using water resources intelligently. We must pay a high level of attention to the protection of wildlife and wild plants and to the creation of nature preserves, aggressively rescue rare animal and plant species on the brink of extinction, rehabilitate the classic ecosystem, increase the area of nature preserves, raise the level of protection, and earnestly protect China's wildlife and wild plant resources, wetlands resources, and biodiversity. We must accelerate the development of forestry bases devoted primarily to the cultivation of fast-growth and high-yield forests. We should develop intensive forestry where conditions are appropriate. We should accelerate the building of timber forests and other bases that produce commercial forest products in order to increase the effective supply of timber and other forest products and ease the pressure on the ecology.

9) Take the national compulsory tree-planting campaign to a deeper level. The whole of society must be engaged in tree planting in a variety of ways. We will continuously diversify and improve the ways in which the compulsory tree planting campaign is conducted by extending the obligation to more citizens in eligible age groups. We must improve the effective results of compulsory tree planting. The management of compulsory tree planting should come under the jurisdiction of the locality where the trees are located. With townships and towns as the units in rural areas and neighbourhoods as the units in cities, we should establish and perfect a compulsory tree-planting registration system and evaluation system. The scope of responsibility of each department and unit in the field of greening should be more clearly defined, a division-of-labour and responsibility system should be implemented, and supervision and inspection should be intensified. Green corridor projects should be planned comprehensively in conjunction with road construction projects and river and canal control and harnessing works. They should be distributed properly and built speedily. Urban greening should be combined with the beautification of the environment and the enhancement of the ecological function in order to gradually raise the level of construction. The armed forces, social organizations, foreign companies, and the masses should be encouraged to plant trees. The idea is to create a situation where afforestation and tree planting take place at multiple levels and in multiple forms, with multiple participants.

4. Optimize the structure of forestry and promote the development of the industry

10) Accelerate the upgrading of the structure of the forestry industry. In response to changes in ecological construction and market needs, we must press ahead with the reorganization of the industry, optimize resource allocation, and promptly create a new look in the development of the forestry industry where the cultivation of forest resources is the foundation, where multiple processing is the catalyst, and where scientific and technological advancement is the support. We will encourage the development of bases for raw material forests and timber forests using the intensive method of operation. We must vigorously develop timber processing, especially multiple processing, extend the industrial chain, realize added value multiple times, and increase the comprehensive usage rate of timber. We must develop famous and special new economic forests, eco-tourism, the cultivation of bamboo, rattan, and flowers, the development of food derived from forest products, the cultivation of rare species of trees and Chinese medicinal herbs, the domestication and breeding of wildlife, and other novel industries. We must nurture new economic growth points in forestry, make full use of China's advantages, namely its vast size, biological resources, and an ample supply of labour, and vigorously develop unique forestry products for the export market.

11) Strengthen guidance for and regulation and control of the development of forestry. We must promptly draw up a forestry development plan based on market needs, resource situation, and the industry's foundation and formulate an industrial policy to steer the industry towards sound development and avoid low-level project duplication. We must encourage the development of name brand products and flagship enterprises, popularize the method of operations in which the companies drive the base and the base links up the peasant households in order to expedite the development of forestry. We must support the development of all kinds of professional cooperative organizations, perfect a system of socialized services, and nurture and regularize the market for forest products and a market for the capital goods of the forestry industry. In the case of timber produced by peasants, we should permit direct contact between producers and sellers. We also need to widen the channels through which peasants can gain access to the market so as to boost the development momentum of the forestry industry.

12) Further open forestry to the outside world. Make full use of the two markets, domestic and foreign, and the two kinds of resources in order to hasten the development of forestry. Bearing in mind the weak foundation of China's forestry and the arduous nature of the tasks ahead, we must work harder to attract foreign funds and adopt resources, improved varieties, technology, and management experiences from overseas. We must raise the level of foreign capital funds used in the forestry industry and encourage foreign businesses to invest in the planting of forests and the development of the forest products processing industry. We must formulate policies that will help increase the exports of forest products, improve the mechanism for promoting forest products exports, and enhance the international competitiveness of China's forest products. We must adhere to the "going out" strategy and intensify the development of forestry overseas. We must actively launch forest authentication work to achieve compatibility with the rest of the world. Effective measures must be taken to step up the protection and export control of China's indigenous resources and prevent the introduction of dangerous foreign living things. We must conscientiously honour the relevant international conventions and strengthen international exchanges and cooperation in the field of ecological protection.

5. Deepen reform of forestry system and enhance its developmental vigour

13) Further improve the forestry property rights system, which is fundamental to inspiring the enthusiasm of all parties in society for afforestation and facilitating the better and faster development of the forestry industry. We must strictly protect the property rights of forest rights owners in accordance with the law and safeguard their legitimate rights and interests. In the case of owners whose titles have been verified and who have been issued forest ownership certificates, we must effectively safeguard the legal effectiveness of the certificates. Where an owner has not been issued a forest ownership certificate even though his or her title has been verified, the certificate should be issued as soon as possible. Where the title is uncertain or is contested, we must promptly clarify the facts and resolve the case and issue proof of ownership without delay. After a piece of land is taken out of agriculture for reforestation purposes, the appropriate formalities must be processed promptly in accordance with the law.

Where a peasant household is allowed to keep a designated hill for its own use, it shall be free to use it long term gratuitously and cannot be forced to turn it over. All timber on the designated hill belongs to the peasant household. If trees have not been planted on the hill to date, the peasant household must be required to plant trees within a set period of time.

Concerning responsibility for hills that were contracted out on a household basis, we should keep contracting relations stable. Upon expiration of the earlier round of contracting, if the way the original contract was carried out was fair, the contracting may continue. If the way the original contract was carried out was determined to be patently fair under the law, the contracting may continue on the condition that practices are improved. For the new round of contracting, a written contract may be entered into, and the period of contracting is to be determined in accordance with applicable laws and regulations. Where the contracting agreement has been renewed but not for the full duration of the legal contracting period, it may be extended to the full term of the statutory period provided the necessary formalities are complied with. If a peasant household does not want to continue to operate the hills, they may be returned to the collective economic organization for its disposal. Hillsides and forests that are still under collective centralized management should be handled on a case-by-case basis. Individual guidance should be given and different effective operating methods should be explored. Joint-stock tree farms and jointly-operated tree farms with which the masses are relatively satisfied and which are doing well should retain the current form of operation and should seek continuous improvements. For other contiguous stretches of woodland, we may adopt the approach of "distributing shares but not the hill, distributing dividends but not the forest" whereby property rights are gradually turned over to the individual. In the case of fragmented and scattered pieces of woodland, we may reasonably price the timber and forest ownership rights and woodland use rights and transfer them to individuals for the latter's operation. For barren hillsides and waste land that are suitable for afforestation, we may decide who should operate them using a variety of direct approaches, including contracting on a household basis, bidding, and auctions. Alternatively, a collective unified organization may first get the land developed and then decide its operator in an appropriate way. In the case of barren hillsides and wasteland that are amenable to afforestation but which do present greater difficulties, we may, through public bidding, assign the right to operate the hillsides or wasteland for a set period of time to an individual or unit that has the capability to do so. While the successful bidder does not have to pay for the right to operate the land, he must afforest it by a specified date. Regardless of which approach or method is adopted, it should be the result of a process of democratic decision-making involving members of the collective economic organization. Members of the collective economic organization should enjoy first right of operation.

14) Accelerate the promotion of the fair distribution of forest, timber, and woodland usage rights. Provided ownership is ascertained, the state should encourage the proper distribution of forest, timber, and woodland usage rights and allow all types of social entities to participate in such distribution through contracting, leasing, transfers, auctions, consultations, and transfers. For now we will focus on invigorating the distribution of the usage rights of barren hillsides, wasteland, and waste sandy land that are state-owned or collective-owned and are suitable for afforestation. Where it is impossible at the moment to determine the operator of a barren state-owned hill or a piece of state-owned wasteland which is nevertheless suitable for afforestation, or where the operator is not capable of afforestation for the time being, the hillsides or wasteland should still be turned over to a military unit, a production construction brigade, or another unit in the area for afforestation in accordance with the relevant state regulations. The timber thus produced shall belong to the tree growers. Forest, timber, and woodland usage rights may be inherited, may be used as collateral to secure a loan, may be used to pay for shares in an enterprise, or may be used as investment in a joint venture or cooperative venture. We must actively nurture the timber market, develop forest resources evaluation organizations, promote the sound distribution of timber, and inspire the enthusiasm of operators to invest in and operate forests.

We must standardize the distribution procedures and tighten distribution management. We must make an earnest effort to offer a variety of good services relating to distribution and promptly process the recording of changes of titles in order to protect the parties' legitimate rights and interests. We must firmly prevent unauthorized tree cutting in the course of transfers. We must prevent any attempt to change the use of the woodland or its public- interest nature and we must prevent the loss of state assets. We must effectively strengthen supervision and management of the funds set aside for the development the forest industry after the transfer. The State Council agency in charge of forestry should diligently formulate detailed measures for the distribution of the usage rights of forests, trees, and woodland. They should be submitted to the State Council and put into practice upon the latter's approval.

15) The development of non-public forestry will be deregulated. The state encourages all kinds of social organizations to invest in and develop the forest industry, regardless of their ownership system, their industry, or their location. Provided they are capable of doing so, all peasant households, urban residents, science and technology personnel, private enterprise owners, foreign investors, and the employees and cadres of enterprises and institutions may take part in forestry development and engage in forestry construction either on their own or as a partnership. We need to further clarify the legal status of non-public forestry and fully implement the policy of "whoever plants shall also own, whoever plant together shall share ownership together". It is necessary to make our tax and fee policies, resource-use policies, and investment and fund-raising policies uniform to create a level playing field for all kinds of operators in the forest industry.

16) Deepen the reform of the management systems for the key state- owned forests, tree farms, and nurseries. We need to establish a forest resources management system that will integrate responsibilities with rights and privileges, and that will combine the management of assets with the management of personnel and affairs. In accordance with the principle of separating government administration from enterprise management, we should remove from forestry enterprises the management of forest resources and turn it over to the agency in charge of state-owned forests. In addition to discharging the function of the management of forest resources on behalf of the state, the agency in charge of state-owned forests should carry out the duties and functions of the owner who put up the capital and, at the same time, enjoy the rights to which the owner is entitled. Social management functions that are now performed by the enterprises should be gradually hived off from the enterprises and turned over to the government. That way, the enterprises will become bona fide independent operators and take part in market competition. State-owned forestry enterprises should be reorganized in accordance with the principle of specialized cooperation. Proper arrangements should be made to place surplus enterprise workers in jobs. In conjunction with the people's governments of the affected provinces, autonomous regions, and municipalities directly administered by the central government, as well as other related agencies in the State Council, the State Council agency in charge of forestry should work out a detailed reform plan for submission to the State Council. Upon the State Council's approval, the plan should be put into practice.

Deepen the reform of state-owned tree farms. Gradually put them into one of two categories, namely, ecological and public-interest- oriented tree farms and commercial tree farms, and adjust their internal structure and operating mechanisms accordingly, depending on which category the tree farms fall into. The principal mission of ecological-and-public-interest-oriented farms is to protect and cultivate forest resources. They should be managed as public interest institutions and their required funding should be the responsibility of the government at the same level based on the administrative subordination relationship. Commercial tree farms and state-owned nurseries should be run fully as enterprises and should operate according to the market mechanism. They should have decision- making authority in their operations and should be held accountable for their own profits and losses. Even as they protect and cultivate forest resources and contribute to ecological and social benefits, they should employ a variety of flexible operating methods, engage in diversified operations, and tap production and business potential to the fullest extent. We should earnestly care about and solve the difficulties and problems relating to production or daily life faced by the workers of poor state-owned tree farms and nurseries. We should accelerate the reform of the management system of public- owned forestry and encourage the formation of inter-regional consolidation of tree farms and nurseries that transcend the boundaries of administrative divisions in accordance with the principles of voluntary participation and mutual benefit. This can be accomplished in a number of ways, such as mergers, acquisitions, and the shareholding system. That way they can achieve scale management, lower operating costs, and improve their margins of profitability.

17) Adopt a differentiated operating and management system for forestry. In order to enable forests to fulfil their multiple functions, it will be necessary to divide China's forestry into two major categories, depending on their different uses: public- interest forestry and commercial forestry. Different management systems, operating mechanisms, and policy measures should be adopted for each category. We should reform and perfect the tree-cutting quota system and apply different resource management measures to public-interest forestry and commercial forestry. Public-interest forestry should be managed as a public-interest institution. The government should be the main investor, but we should also attract social forces to jointly develop public interest forestry. Commercial forestry should be managed as a basic industry. The market should have the primary responsibility for allocating resources, with the government providing support as necessary. The government should offer reasonable compensation, which may take a variety of forms, to the investors concerned for all forest resources subject to public-interest forestry management. We need to gradually change the present way of investing in afforestation and the way it is managed. Even as we continue to improve the bidding system and guarantee [bao zhang] system, we should set aside some funds for investment in afforestation and explore the idea of purchasing outright the non-state-owned public-interest forests created by a variety of social entities. Investments in public- interest forestry construction and compensation funds for forest ecological benefits should come from the central government and local governments at all levels, respectively, based on the separation between government affairs and power. We should accelerate the creation of a public-interest forestry authentication system.

6. Increase government support and safeguard the long-term stable development of forestry

18) Increase government input in forestry construction. Investment in the construction and management of public-interest forestry and in major infrastructure projects in forestry should be included in the budgets of governments at all levels and should be funded on a priority basis. The Ministry of Finance should make sure that funding is available for projects that have an impact on the nation's economy and the people's livelihood. Investment in regional ecological projects planned by local governments should be incorporated into the local budgets, while investment in related ecological projects planned by a department should be included in the total budget for related projects. The forest ecological benefit compensation funds will be incorporated into the central and local government budgets and will be increased in the course of time. Providing-work-in-lieu-of-relief funds, comprehensive agricultural development funds, and other aid-agriculture funds will also increase input in forestry construction as appropriate. The central government will partially fund investment in the prevention of forest fires, the prevention and control of plant diseases and insect pests, the popularization of good seedlings, and other projects of a social and public-interest nature in the construction in key regions of bases for fast-growing high-yield timber forests and bases for timber forests consisting of rare tree varieties. Forestry subsidy standards for different kinds of ecological projects will be established gradually. As the reform of key state- owned forests deepens over time, the local governments concerned must assume responsibility for social undertakings formerly paid for by forestry enterprises, with support from the central government as necessary.

19) Intensify financial support for forestry development. The government will continue its credit support policy towards forestry under which long-term low-interest or limited-interest loans are made available. The actual loan maturing periods may be determined through consultations between the bank and the enterprise based on the growth cycle of timber. Depending on the circumstances, a certain amount of government interest subsidies will also be available. The financial institutions concerned should ease the lending requirements as appropriate for individuals who want to engage in afforestation. They should increase small loans and joint secured loans to peasant households and workers in the forestry industry. Forestry operators may use timber as collateral to secure bank loans in accordance with the law. Forestry enterprises should be encouraged to get listed on the market as a means of raising capital.

20) Reduce the tax and fee burden on forestry. We must continue to implement the various forestry tax preferential policies already introduced by the government and standardize them. To meet the general demands of tax for fee reform in rural China, we must gradually abolish the special agricultural tax on logs and raw bamboo. We will also abolish the miscellaneous unfair fees levied on peasants involved in timber and other forestry producers and operators. We will reform the way forest cultivation funds are collected, managed, and used. Forest cultivation funds already collected must gradually be returned to the forestry producers and operators in full. It will be the responsibility of the finance departments to close the resulting shortfall in the funding of forestry management units at the grass roots.

7. Use science and education to boost forestry; adhere to forestry management based on law

21) Strengthen scientific and technical educational work in forestry. We need to emphasize basic research, applied research, and the development of new and high technology in forestry science. We need to enhance the scientific and technological innovation capability of forestry. Our research should focus on critical technologies in the following areas: selection and breeding of good tree varieties, afforestation in environments with poor conditions, prevention and control of major plant diseases and insect pests in forests, prevention and control of desertification, the monitoring of forest resources and the ecology, preservation and use of genetic materials, combined forestry-agriculture operation, forest fire control and management, and the processing and commercialization of major economic forest products. We need to do a good job in building major forestry laboratories and major field observation stations, and in establishing a forestry science database and forestry information network. Plans for the key forestry construction projects must be developed in conjunction with plans for the dissemination of forestry technology; they must also be implemented at the same time and the results checked and accepted at the same time. We need to deepen the reform of the science and technology system. Even as it supports scientific research in basic, public- interest-oriented forestry, the government must actively encourage non-public-interest-oriented science and technology research and dissemination to orient itself towards the market. It will encourage forestry scientific research units, institutions of higher education, and science and technology personnel to expedite the commercialization of science and technology results by founding science and technology-oriented enterprises, setting up science and technology demonstration points, and offering such services as science and technology contracting and consulting. The establishment of a forestry technology dissemination service system must be accepted and the science and technology corps must be stabilized. Units and individuals who have made outstanding contributions to forestry science research, the dissemination of new technology, and the development of new products will be generously rewarded. Related policies must be improved to bring about the integration of forestry, science, and education and the integration of technology, industry, and trade. Forestry standardization must be vigorously pursued; a set of sound and comprehensive forestry quality control standards and a quality control system must be created. We must continuously intensify international cooperation in the field of forestry science and technology. We will create a variety of forestry systems in light of the characteristics of forestry construction. We must effectively step up training for forestry workers and improve the overall quality of those engaged in forestry construction.

22) Accelerate the building of a legal system in forestry and expedite forestry law-making. We must vigorously go about formulating laws and regulations pertaining to natural forest protection, wetlands protection, the operation and management of state-owned forest resources, the transfer of the usage rights of timber and woodland, measures regulating the use of forestry construction funds, quality control of forestry projects, and the construction of key forestry projects. In addition, we will revise existing laws and regulations in light of the new situation. We need to strengthen forestry law enforcement, strictly protect and manage forest resources and wildlife and wild plant resources, crack down hard on those who commit such crimes as cutting down trees wilfully and without authorization, developing woodland or taking up woodland without authorization, and wantonly hunting and killing wildlife. The wilful gathering of wild plants will be strictly prohibited. The forestry law enforcement supervisory system will be strengthened. We will intensify the supervision of law enforcement, improve the terms of the supervision of law enforcement, and improve the quality of the law enforcement supervision contingent. It will be necessary to strengthen education in the forestry legal system and education in ecological ethics in order to create a sound social climate and a law-enforcement environment where law enforcement personnel can operate in accordance with the law.

8. Effectively strengthen leadership over forestry work

23) Party committees and governments at all levels must attach great importance to forestry work. They need to fully appreciate the importance of strengthening forestry construction for implementing the sustainable development strategy and building a moderately well- off society in an all-round way. They also need to appreciate the urgency of strengthening forestry construction. The intensification of forestry construction must be incorporated into the national economic and social development plan. In addition to correctly understanding forestry work, party committees and governments must be held fully responsible for it. They must develop the right policies and get the job done. All departments concerned must conscientiously carry out their duties and functions and cooperate closely with one another to support forestry development. To meet the need to hasten the development of forestry, we must improve the administrative and management system for forestry and build up forestry administrative organizations at all levels of government. A sound and dynamic forestry monitoring system should be created. Such a system should reorganize existing monitoring resources and monitor China's forest resources, desertification, and other ecological changes in a dynamic way and regularly provide society with the results of its monitoring. The forestry dissemination and service system should be improved. The township and town forestry work station is the most basic institution in the organized management of forestry production and operations. It should fully live up to its role and fully discharge its duties in policy propaganda, resource management and protection, implementation of forestry policies, production organization, science and technology dissemination, and socialized services. The forestry industry must continue to maintain its spirit of arduous struggle and selfless devotion so as to make new contributions to the development of the industry.

24) Adhere to and perfect the management by tenure and management by objective systems in forestry construction. There should be a proper division of labour between the central government and local governments in the area of forestry construction. The central government provides leadership for forestry work nationwide and is primarily responsible for formulating forestry laws, regulations, and policies as well as making national forestry development plans. It guides and coordinates the solution of major forestry and ecological issues that are national in nature or that straddle provinces, autonomous regions, or municipalities directly administered by the central government. It also helps localities expedite forestry development. Local governments at all levels are fully responsible for forestry work within their jurisdictions. The lead government comrade in charge of forestry construction is the person who has the primary responsibility, while other comrades in charge of forestry work are the other people who are also responsible. Management by tenure and management by objective should be adopted in forestry construction. There should be strict evaluation; people should be strictly rewarded or punished, all under the supervision of the people's congress at the same level. Organization departments and discipline inspection commissions under the party committees at all local levels should make the implementation of the responsibility system part of the evaluation of the cadres' performance and an important criterion when it comes to making decisions about whom to appoint, select, reward, and punish. In the case of key national forestry projects, we must closely follow the management system under which the plans are implemented to the provincial level, tasks are assigned and funds allocated to the provinces, and responsibilities are spelled out clearly for the provinces. Progress in a project must be inspected and reported at regular intervals. A system must be created under which those responsible for major incidents, including serious forest destruction cases, cases involving the illegal use of funds, and cases involving project quality, will be investigated and held accountable. Where regulations have been violated, we must vigorously pursue the leaders responsible and hold them accountable.

25) Mobilize all social forces to care about and support forestry work. Trade unions, women's federations, the Communist Youth League, militias, young people and students' organizations, and other social groups must each do their part and mobilize forces in all quarters in society to commit themselves to the greening of the land. The People's Liberation Army [PLA] and armed police forces have made significant contributions to protecting forests and greening the motherland. They should continue their excellent tradition and actively take up the tasks of afforestation and greening. We must vigorously strengthen forestry propaganda and education work and ceaselessly heighten the sense of ecological security among the entire people. Elementary and secondary education must amplify the relevant subject matter and disseminate knowledge pertaining to forestry and the ecology. The news media must incorporate forestry propaganda into public-interest-oriented propaganda. All localities and all sectors should rally closely around the CCP Central Committee whose general secretary is Hu Jintao, hold high the great banner of Deng Xiaoping Theory, earnestly implement the important thinking of "Three Representations", mobilize and organize the people of the whole country to enthusiastically join the great cause of forestry construction, and fight hard to build China up as a socialist modernized nation where the mountains and rivers are beautiful, and where there are ecological harmony and sustainable development.

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