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ИД «Финансы и кредит»






National Interests: Priorities and Security

Institutional issues and prospects for the development of the northern regions of timber production

Vol. 16, Iss. 2, FEBRUARY 2020

Received: 26 August 2019

Received in revised form: 15 September 2019

Accepted: 5 October 2019

Available online: 14 February 2020


JEL Classification: Q23, Q58, Q56

Pages: 307–325


Kozyreva G.B. Institute of Economics, Karelian Research Centre of Russian Academy of Sciences (IE KarRC RAS), Petrozavodsk, Republic of Karelia, Russian Federation


Volkov A.D. Institute of Economics, Karelian Research Centre of Russian Academy of Sciences (IE KarRC RAS), Petrozavodsk, Republic of Karelia, Russian Federation


Subject The article investigates how institutions of sustainable development of timber lands originate, illustrating the case of the Republic of Karelia.
Objectives The study evaluates substantive aspects of the developing institution of forest certification by analyzing the business behavior and the way people of forest districts of Karelia take part in forest management.
Methods The methodological approach is based on the sustainable development concept and sustainable forest management model. We especially stress the social component, including the quality of human capital and quality of social capital. They are viewed in terms of the ability and readiness of local communities to get involved in forest management. The empirical framework relies upon the economic and sociological survey of some timber districts of the Republic of Karelia, which were conducted in 2018.
Results Ineffective formal institutions actually fail to create an environment where people could exercise their legal rights complying with sustainability principles. Forest companies fail to meet sustainability requirements. However, they still may apply for forest certificates.
Conclusions and Relevance The study reveals latent challenges arising from the forest certification institution. The principle of social compensation is often neglected. A forest certificate provides some guarantees for local people. As local people have negative views on environmental and socio-economic aspects of forest management and, furthermore, do not know about forest certificates as a means protecting their rights, forest certificates get less significant institutionally and the institutional mechanism for forest certification becomes distorted. The findings can be used to substantiate and outline relevant tools for a forest management policy.

Keywords: timber land, sustainable forest management, social sustainability, forest certification, social capital


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