Kozyreva G.Yu., Volkov A.D.Published in:
Journal of International Economic Affairs
– Volume 9, Number 3 (July-September 2019)

JEL classification: L73, Q56, Q57

Keywords: forest certification, forest resource areas, relations between forest companies and local communities, sustainable forest management model


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Abstract:

The study reveals the latent problems of functioning of the institute of forest certification. The principle of social compensation laid down in accordance with its criteria in the economic strategies and practices of forest companies is often not implemented. On the one hand, the low quality of social and human capital hinders the realization of citizens ' rights in forest management, on the other hand, it secretly allows business not to fully fulfill its social role in the development of the territory. An institutional trap is formed. Social compensation is more effective the more actively local communities are involved in the forest management process. However, low social capital is due not so much to the weakening and loss of social ties, but rather to the poor quality of formal institutions and forced marginalization of local communities. The empirical base of the study is the data of economic and sociological surveys of forest resource areas of the Republic of Karelia, implemented in 1997-2018.

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