The work considers that the challenge lies in learning how to design an National Forest Financing Strategies (NFFS), identifying the objectives, principles, elements and those involved in the process, and also addressing the question of how formulation and implementation can be improved. All this must be done while bearing in mind the guiding principles of sustainable management, which cover institutional, social, economic, financial, technical and environmental aspects because of the multifunctional nature of forests.
The work seeks to offer a synthesis of experience in 19 Latin American countries, after which some initial achievements and experiences are presented concerning the financing of forest management in Latin America, based on the joint work of two initiatives: the FAO/IUCN/CCAD project Financing strategies and mechanisms for sustainable use and conservation of forests – Phase 1: Latin America and the ACTO/DGIS-BMZ/GTZ regional programme Sustainable use and conservation of forests and biodiversity in the Amazon region.
It is an attempt to address the issue of the financing of SFM in an inclusive, comprehensive manner, considering the financing of investment and of payment for goods and services as a single whole, bearing in mind that they are part of investment source and instrument chains and of processing and marketing chains respectively, in which each stage has its own (pre)financing systems with their own dynamic rules and mechanisms. Analysis of the processing and market chain is beyond the scope of the present work.
FAO (2009) Towards National Financing Strategies for Sustainable Forest Management in Latin America