Corruption in timber production and trade: An analysis based on case studies in the Tarai of Nepal

Abstract

Corruption in the production and trade of timber from Nepal’s Tarai forests is a historically narrated but little investigated phenomenon. This research explores how various actors interpret, define and practice corruption at different stages of timber trade chains from the three main forest governance and management regimes – government, community and private forests. It focuses on three key questions: 1) the forms and level of corruption; 2) the actors involved in corruption, their motivations, and institutional arrangements and processes enabling them; and 3) anti-corruption responses. The research applies a case study approach, and uses a value chain framework to structure the analysis of timber production and trade from two Tarai districts. It employs mixed methods, based primarily on qualitative analysis supported by quantitative data. Individual interviews (n=143), focus group discussions (n=10), observations, and a review of official documents and records, were used to collect and triangulate data. The research suggests that timber governance in Nepal’s Tarai is characterised by systemic, institutionalised and decentralised corruption, in which multiple, mutually-reinforcing corrupt practices, including bribery, fraud and theft, patronage and favouritism, illegal pressure, and conflicts of interest, occur as common phenomena along the timber trade chains from all major forest governance and management regimes. In many instances, corruption has involved illegal forest activities that resulted in unsustainable management of forests and reduced revenues to government and communities. Community forests experience a higher degree of corruption than government-managed forests, mainly due to the weak accountability structures of community forest governance. The core actors engaged in timber-related corruption comprise forest officials and local political and economic elites; they have forged a nexus at the local level, and maintained relations with other powerful social actors from local to central levels, through bribes and political networks. Many of these actors perceived some forms of corruption and illegal forest activities as acceptable behaviours, and rationalised them in various terms. Such perceptions and rationalisations have ultimately facilitated the perpetuation of corruption. Despite comprehensive legal-institutional arrangements and strong civil society engagement, the response to corruption in Nepal in general, and in the timber sector in particular, has been ineffective; this failure is attributed to issues in both the design and enforcement of anti-corruption strategies. Some of the anti-corruption measures applied in the timber sector have led to negative social, economic and ecological consequences, and have become counter-productive for corruption control. The findings suggest that although the factors contributing to corruption are primarily visible in the ‘loopholes’ of legal-institutional arrangements and poor law enforcement, the underlying factors – the broader socio-political and economic contexts of the country – are especially significant in its persistence and ubiquity. In particular, the ‘culture of corruption’ in Nepali socio-politics, which has flourished under patronage networks and impunity, the growing middle-class culture, poor social security arrangements, and social acceptance of corruption, have fostered timber-related corruption in Nepal’s Tarai, as both sectoral and local manifestations of corruption more generally. Hence, an effective anti-corruption strategy is likely to require a ‘big push’ involving all major social, political and economic institutions. Show more