Forestry


guiding forest sector reform in China

— China —

transition. partnership. alignment.


Guiding Forest Sector Reform: GG International's Role in China’s Transition to a Market Economy

“Forests are more than resources—they are legacies. Transitioning their governance requires not just policy, but partnership.”
— Hon. David Butcher, Senior Technical Adviser, GG International, former NZ Minister

Challenge

In the mid-1990s, China, along with several other East Asian economies, was navigating the complex shift from centrally planned economies to market-based systems. Within this broader economic transition, the forestry sector presented unique institutional and policy challenges. State-owned forestry enterprises, historically insulated from competitive pressures, now faced the demand for efficiency, accountability, and environmental sustainability.

The Forestry in a Market Economy project, funded by the Food and Agriculture Organization (FAO) and supported by the Japanese and Chinese governments, aimed to align forestry practices with the emerging realities of a liberalizing economy. However, the scope of reform extended beyond China’s borders—engagement with Mongolia, Vietnam, and Myanmar added complexity and regional significance. The challenge was not only to define a three-year reform roadmap but also to do so in a manner that was politically feasible, institutionally embedded, and regionally coherent.


Strategy

GG International, through the appointment of Hon. David Butcher as Senior Technical Adviser, led the strategic formulation of the project’s next phase. Drawing on deep experience in both public sector reform and forestry governance, Mr. Butcher initiated a targeted programme of work that emphasized stakeholder alignment, strategic budgeting, and regional diplomacy.

Central to this strategy was a participatory planning process. Working collaboratively with Japanese and Chinese staff, GG International assessed proposed activities against broader policy goals—ensuring every initiative was not only technically viable but also strategically aligned. Emphasis was placed on building local ownership of reforms and negotiating commitments from each country partner.

Equally important was the external engagement component. Recognizing the importance of cross-project synergy, Mr. Butcher initiated dialogue with parallel forestry programmes in the region. This culminated in securing support from the Finnish government, thereby reinforcing the project's multilateral credibility and deepening its funding base.


Transformation

The outcome of GG International’s involvement was a clearly defined and locally validated roadmap for forestry reform across four countries. By the end of 1996, the team had:


  • Secured intergovernmental alignment on priority actions,
  • Defined operational targets and budgets for the remaining three years of the project,
  • Built diplomatic bridges that enhanced regional collaboration, and
  • Catalyzed new partnerships, including with Finland, to reinforce long-term project sustainability.

GG International's role proved pivotal in translating complex transitional dynamics into implementable actions. By combining expert leadership with regional diplomacy, the firm not only helped define a forestry reform pathway for China and its neighbors but also modeled how international cooperation can accelerate sustainable development in times of economic transition.