Geographic Indications for Javanese Teak: A constitutional change
AbstractThe central issue addressed in this paper is whether geographic indication (GI) can be applied as a tool to encourage some furniture industries and teak producers to take collective action to improve teak product quality and increase global market competitiveness. This paper explores the possibility of implementing GI on teak as a means to improve local community rights to manage teak resources, Perum Perhutani revenues and the perception of teak wood products on national and international markets, as well as employment in the furniture industry. The paper also discusses the institutional arrangement necessary to enable GI implementation on teak. After the 1998 financial crisis, Javanese furniture industries experienced a boom, but illegal logging in state forests surged as well. Unfortunately this development was disconnected from forest resources capacities. Stakeholders made a living from bad practices and misuse of forest resources. Furniture was rejected because of its bad quality, and wood was wasted. Instead of producing high-quality teak products, Java turned to mass production of cheap furniture for national and international markets. As a result wood supply was shrinking, putting many furniture enterprises and their hundreds of thousands of employees in jeopardy. Indonesian furniture is getting a bad reputation on the international market. Indonesians by culture have the perception that teak wood is something special, and on the world market teak is the best-known tropical species. In other good news, local community enthusiasm for planting teak is growing. Building on this we expect that GI to help maintain a common interest among stakeholders. GI designation is a sign that goods have a specific geographic origin and possess qualities or have a reputation because of that place of origin and the knowledge of local communities. Most commonly, a GI consists of the name of the place of origin of the goods. Agricultural products typically have qualities that derive from their place of production and are influenced by specific local factors, such as climate and soil.
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Bibliographic InfoPaper provided by CIRAD, Forest department, UPR40 in its series Working Papers with number 40402.
Length: 13 pages
Date of creation: Jan 2006
Date of revision: Feb 2006
Publication status: Published in "Survival of the Commons: Mounting Challenges and New Realities," the Eleventh Conference of the International Association for the Study of Common Property, Bali, Indonesia, June 19-23, 2006.
Teak; Geographic Indication; Furniture; Community; Collective action;
Find related papers by JEL classification:
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-02-10 (Agricultural Economics)
- NEP-ALL-2007-02-10 (All new papers)
- NEP-LAW-2007-02-10 (Law & Economics)
- NEP-SEA-2007-02-10 (South East Asia)
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