IS COMMERICAL FORESTRY SUSTAINBLE IN SOUTH AFRICA?: THE CHANGING INSTITUTIONAL AND POLICY NEEDS C:\tewari\africa\newforest.rtf

Commercial forestry is an important industry in South Africa, generating considerable employment and foreign exchange. The industry has grown rapidly after the World War II with active government support. However, since the beginning of the transition to democracy in 1991, there have been increasingly vociferous attacks on the industry regarding its urban and big business bias and its role in damaging the environment. The transition to democracy has brought a change in the structure or make-up of its stakeholders which have diverse expectations from the industry. At the same time, the sustainability of the industry is a major concern for policymakers and has to be dealt with in conjunction with concerns from its stakeholders and society at large. This study points out a need for new institutional or policy reforms and suggests a set of policy guidelines that might defuse the tension in the industry and set it on a sustainable path.