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Countries Appendix CAMBODIA (55.7%) Cambodia's primary rainforest cover went from over 70% in 1970 to about 20% today, so the country is left with about 17.3 million acres (7 million ha). Most of the logging is to satisfy the international demand for tropical timber. Logging rates accelerated dramatically during the 90's and unprecedented numbers of lumber mills were constructed. In early 1996, Cambodian leaders signed 30 contracts with foreign, mostly Asian, logging companies to log 16 million acres (6.5 million acres) of rainforest (over 92% of Cambodia's remaining rainforest). Much of Cambodia's virgin forest was slated for the timber mills. However numerous groups have protested this huge concession including King Sihanouk and the Prime Minister Hun Sen and the situation for Cambodia's forests may be improving. The government seized timber licenses from companies that had not commenced logging and banned unprocessed log exports and imports of logging equipment. The government also ordered the military to crack down on illegal logging operations. However, observers report that Thai timber companies are engaged in widespread cutting along the Cambodian border. Loggers are using a loophole in logging laws to get around the ban on unprocessed timber exports. Thai loggers enter Cambodia where they set up saw mills and ship wood across border as "processed" wood. In January of 1997, documents showing secret military logging operations were uncovered. The military reportedly used proceeds from the logging to finance the war against Khmer Rouge guerrillas. Recent reports indicate that logging continues and unprocessed logs are still exported despite the government's edict. Mounting evidence also suggests that wood is being smuggled through Vietnam by the military. In any case, the government is seeing little revenue from logging operations: from 1995-1996 some US$400 million should have been generated, but the government has only seen US$10 million. In 1997, the government lost $90 million in logging revenues from its failure to collect from illegal loggers, It is still unclear what direction Cambodia will take in the future; whether it will choose to liquidate or save its remaining rainforest reserves. In October 1997, Reuters reported that the Cambodian government hired the Washington-based Development Alternatives Inc. (DAI) to develop a system to stop illegal logging and corruption in the forestry sector using satellite technology. This decision is part of the government's effort to convince the World Bank, United Nations, and IMF that the government can maintain an effective forestry sector in light of the IMF's cancellation of $120 million in loans to the government. These institutions suspended the loan program citing corruption in the forestry sector (see above). The World Bank quickly followed suit by suspending direct aid to the government until the IMF restores its own aid. At the time, the World Bank estimate that the 4.2 billion meter harvest rate would exhaust the country's forest resources within 3-5 years. Conservationists see this development as a major step towards slowing Cambodia's rapid deforestation. The government may end its tax exemptions to logging companies since it claims to have lost $100 million in 1996 due to illegal logging (33% of its total budget revenue for 1996). Government logging revenue remained well below expectations in 1997 and 1998 despite the high logging yield. In 1998-1999, the government canceled another 12 logging concessions covering 5 million acres (2 million ha) in an effort to win more international aid. The Asian financial crisis and the export ban gave Cambodia's forests a temporary reprieve as log exports fell 47% between 1997 and 1998. |
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