Financial Crisis in Forestry and Its Measures

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UDС

630*61

DOI:

10.17238/issn0536-1036.2016.6.9

Abstract

The paper presents a brief analysis of the financial crisis in the forest sector and its measures. A common reason of the crisis is the fact that the forest management has not or-ganized the transition to the sustainable development, taking into account the requirements of the market economy, where the pricing policy of resources and forest services should be determined by the supply-and-demand balance, and the proceeds must cover costs to ensure the breakeven activity. However, the current payments for standing timber under the guise of rental payments have no connection with market prices. In fact, they are defined by ad-ministrative means, which leads to the understated forest income that does not provide a simple reproduction of the used resources even by one-third. To normalize the situation of the forest financing it is necessary to sell timber at market prices, taking into account the net return factors; the formed forest income should be distributed to the financial flows to pro-vide the balance of economic interests of all interrelated subjects of forest relations. The part of the income from timber, which should ensure the reproduction of the used resources, should remain in the accounts of the entities, which are responsible for the conducting for-estry. The institution of “subventions” does not fulfil a function in the basic problem of or-ganizing of the sustainable and efficient forest management and forest exploitation.

Authors

N.A. Moiseev, Member of the Russian Academy of Sciences, Chief Research Scientist

Affiliation

Russian Research Institute for Silviculture and Mechanization of Forestry, Institutskaya ul., 15, Pushkino, Moscow region, 141202, Russian Federation; e-mail: forestvniilm@yandex.ru

Keywords

subvention, income from timber, sustainable management of forests and forest management

For citation

Moiseev N.A. Financial Crisis in Forestry and Its Measures. Lesnoy zhurnal (Forestry journal), 2016, no. 6, pp. 9–16. DOI: 10.17238/issn0536-1036.2016.6.9

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Received on March 04, 2016