Timber Ownership Certification and Opportunities for Smallholder Credit: Case Study on Teak Smallholdings in Bokeo, Lao PDR

The report describes the process of developing a certificate that is issued by the Lao PDR government to recognize user rights over one rotation period and to facilitate the legal harvesting and transport of timber from teak plantations. Financial valuation was added to the certificates to test the possibility of using standing timber value as loan collateral in local microfinance schemes. The report presents background research, a global review of similar approaches, opportunities and shortcomings of the certificates and an evaluation system. This report has relevance for development and forestry practitioners, inter-governmental and non-governmental organizations, national forestry agencies, agriculture, environment and rural development ministries, banks, credit agencies and those working in rural development and community forestry who are interested in exploring smallholder credit schemes involving rural development initiatives.