Forest industries the world over are considering the transition to sustainable forest management (SFM). Significant stresses are being experienced by forest stakeholders as they come to terms with this transition, which includes notions of resource scarcity, sustainable practices and non-timber forest values. Local conditions strongly influence the definition and implementation of new management practices, which results in very different transitions being required in different locations. All, however, are characterised by the need for information on resource demand, supply, management and use to help manage and monitor the effectiveness of the transition, and to ensure the productivity and sustainability of forestry investments. Two constraints on moving towards SFM are the high costs of information production and usage, and the gap between current practice and SFM.

Forest Resource Accounting helps to keep down the costs of information usage by focusing on what is essential - the information required to set, achieve and review forest policy and management goals. This helps bridge the gap between current and improved practices in a step-by-step, practical manner. In particular:

• Information is treated like other production factors, such as land, labour and capital, recognising that, while enough information of the correct type is necessary, too much is expensive and unnecessary. Forest Resource Accounting focuses on three key areas of information: supply of forest assets, demand for forest goods and services, and use and management of forest resources.
• Implementation of Forest Resource Accounting is process-oriented, featuring inputs from many sources over a long period of time. Objectives are achieved in small steps which empower stakeholders progressively via a process of continuous improvement. Forest Resource Accounting comprises a cycle of processes linking information usage to the refinement of policy and management priorities. The mechanism is robust, allowing information priorities to be dealt with as and when they arise.
• By promoting step-by-step, achievable objectives for the collection, analysis and interpretation of forest information, the Forest Resource Accounting approach helps to reduce the costs of information usage, guide managers towards improved forest policy and management effectiveness, enhance transparency and accountability and lead to more productive use of forest assets.

Forest Resource Accounting was developed for the International Tropical Timber Organisation (ITTO) by the International Institute for Environment and Development (IIED) and UNEP-WCMC. The approach, which has developed with assistance from the British Overseas Development Administration (ODA), was officially adopted by ITTO Member Countries in 1993. The initial impetus arose from the challenge of ITTO's Objective 2000 of trade only in products from sustainably-managed forests by the year 2000. In March 1997 FAO's Committee on Forestry (COFO) gave official recognition and support for Forest Resource Accounting, naming it as the best means of building national information management capacity in the forestry sector.

The Forest Resource Accounting cycle contains five processes, the first of which - agree forest goals - aims to agree the principles, policies, values and issues which define SFM under the prevailing local conditions. A high degree of consultation is required during this process, helping to build ties between stakeholders and facilitate further co-operation.

The subsequent four processes are: determine the information needs of forest stakeholders; design strategic information products; agree roles and responsibilities for information production; and enable stakeholders to deliver the information. These four processes provide the framework to develop and manage cost-effective information on the areas identified as critical to SFM. Individual processes may be revised as policies evolve and information needs become refined.

The approach can be applied at various geographic and technical levels. To date, it has been piloted in Ecuador, Guyana, Indonesia (one province) and Pakistan, and is being considered for implementation in several other countries. National forest agencies may apply Forest Resource Accounting to their overall information strategies (e.g. as in Guyana and Pakistan), but Forest Resource Accounting may also be applied to specific topics (e.g. plantation development in Ecuador) or specific localities (e.g. Jambi Province in Indonesia). Forest Resource Accounting approaches started at the local level have the potential to evolve into national systems, and vice versa.

Forest Resource Accounting is a country-driven process and its success depends on the willingness of the country to adopt the principles and values of improved forest management and, ultimately, SFM. Many countries already have some components of Forest Resource Accounting in place. For instance, institutions may be carrying out forest inventory, monitoring harvesting levels, or gathering data about forest biodiversity and indigenous uses. However, data collection may not be supporting policy-making, management and investment directly, and it may not be cost-effective. Forest Resource Accounting can enhance existing capacities by revealing information gaps and proposing ways to fill them.

To facilitate the better use of information and monitoring in forest policy development and sustainable management, IIED and UNEP-WCMC welcome offers to collaborate with countries wishing to pursue or refine Forest Resource Accounting. No permanent financial support exists for Forest Resource Accounting at the current time: this must be arranged in co-operation with multilateral or bilateral donors, or privately.

For further information on Forest Resource Accounting, please contact: Director, Forestry and Land Use Programme, IIED, 3 Endsleigh Street, London WC1H 0DD, UK. Tel: +44 171 3882117 Fax: +44 171 3882826 email: iiedforestry@gn.apc.org