In Serbia, as in other European countries, small and medium enterprises are recognized as a pillar of economic development. At the same time, a clear need for support to those enterprises and entrepreneurship, both in urban and rural areas, is emphasized in national strategic documents. In forestry, small and medium enterprises are of special importance for sector development. However, in Serbia, there is a lack of knowledge about them, and particularly about small and medium enterprises whose business is based on non-wood forest products. Bearing in mind the importance of these enterprises for development of private forestry sector and rural areas, research aiming to determine their characteristics and types is needed. Door-to-door survey was conducted with 91 representatives of non-wood forest products based small and medium enterprises in Central Serbia. Results of cluster analysis showed there were three types of non-wood forest products based small and medium enterprises, in regard to their characteristics. The same number of types was distinguished, in regard to business activities. Results of this research can be used for further detailed study on types of forest-based small and medium enterprises and as a basis for formulation of support measures and, thus, improvement of the entrepreneurship in non-wood forest products sector in Serbia.

UDK: 630*93:630*68(497.6) Illegal logging and related trade represent one of the most important forest-related issues at international policy scene. In 2002, the European Union had initiated establishment of regional initiatives on preventing trade of illegally harvested wood, well known as FLEGT process. Other important segment of European Union efforts is adoption of legally-binding Regulation No. 995/2010 - EU Timber Regulation (EUTR) that prohibits import of illegally harvested wood and their products into EU. Bosnia-Herzegovina is country with economy in transition and with relatively slow progress toward EU integration process, while rising of awareness on need for prevention and combat with illegal activities and corruption represent one of the mayor challenges for its society. This paper analyse forestry professionals’ awareness of the EU Timber Regulation in the Federation of Bosnia-Herzegovina as precondition for planning further steps on improving human and institutional capacities in forest sector to prevent and combat with illegal activities. In order to conduct the analysis of forestry professionals’ awareness on EUTR, survey was conducted among currently employed forestry professionals in forest sector of the FB-H. Results revealed that employed forestry professionals in the FB-H have different level of awareness on EUTR. Therefore, creation and consistent implementation of informational forest policy instruments are needed in order to increase capacities of forestry professionals related to elements of EUTR implementation process. Efforts on prevention and combat with illegal activities in forest sector should involve implementation of mix of forest policy instruments directed toward harmonization of forest policy in the FB-H with EUTR requirements based on active participation of forestry professionals that are aware of EUTR implementation process and its potential influences on forest and wood-processing sectors of the FB-H.

At the global level, due to the negative effects of over-exploitation of natural resources, numerous processes and initiatives for their conservation and sustainable governance have started. The beginning of the transition process, as well as political and economic changes that followed in the countries in transition, were in line with the new orientation of the international forest and nature protection policy. The transition process has caused, among other things, a redefinition of the role of government in managing natural resources. This meant a shift from “government” to “governance” concept. This concept refers to the change from the classical approach of “command and control” to active participation of all involved parties and establishing rules for the division of responsibilities and benefits. The aim of the paper is to identify, analyze and systematise the current concepts of sustainable governance in forestry and nature protection, their characteristics and the principles on which they are based, with a main purpose of preparation of a research platform for more detailed research in this area. The paper gives recommendations for the application of the principles of governance in forestry and nature protection, as well as recommendations for future research in this area.

Background and Purpose: The forest related conflicts has not been often a research topic in SEE. The first regional survey was conducted in five countries: Albania, Bosnia and Herzegovina, Croatia, Macedonia and Serbia, under the scope of the FOPER project. The aim of the study was to identify the most frequent forest related conflicts in terms of types, conflicts attributes, actors, their attitudes and power relations, as well as to investigate more in-depth nature of conflicts and the way how they’ve been managed and how it influenced forest policy development. Materials and Methods: Analytical framework consisted of progressive triangle with three conflict attributes-substance (S), relation (R) and procedure (P) [13] embedded in four conceptsculture (CU), conflicts (CO), conflict management (CM) and policy development (PD) [12]. In total 840 semi-structured interviews were sent to decision makers resulted in response rate of 60%. Results were statistically analyzed by using methods of descriptive and inferential statistics, such as correlation analysis, logistic regression and decision path models. Results and Conclusions: Analytical framework proved appropriate for studying forest related conflicts in SEE. The most frequent conflicts were between forestry and (1) Nature protection, (2) Wood processing industry, (3) Grazing and overgrazing, (4) Building and construction, and (5) Water management, with significant differences among countries involved. Conflict management depended on the culture, as an aggregate variable comprising education, professional competences, communication skills and previous experience. DIJANA VULETI] MERSUDIN AVDIBEGOVI] MAKEDONKA STOJANOVSKA RADOVAN NEVENI] HAJRI HASKA STJEPAN POSAVEC SILVIJA KRAJTER LEONIDA PERI BRUNO MARI] Croatian Forest Research Institute, Cvjetno naselje 41 10450 Jastrebarsko, Croatia Faculty of Forestry, University of Sarajevo, Zagreba~ka 20 71000 Sarajevo, Bosnia and Herzegovina University »St. Kiril and Method«, Faculty of Forestry Blv. Aleksandar Makedonski 66, 1000 Skopje, FYR Macedonia Institute of Forestry, Kneza Vi{eslava 3, 11030 Belgrade, Serbia Agricultural University of Tirana, Faculty of Forest Sciences 1029 Kamez Koder, Tirana, Albania Faculty of Forestry, University of Zagreb, Sveto{imunska 25, 10002 Zagreb, Croatia

UDK 630*6:630*43(497.6 Prozor-Rama)          630*43:630*6(497.6 Prozor-Rama Despite of the significant activities on the forest fires prevention, number of forest fires is constantly growing worldwide causing tremendous direct and indirect damages. Direct damages are referring to the losses on timber and other forest products, fire fighting and remediation costs as well as costs of fire sites restoration. Indirect damages are referring to the negative impacts of forest fires on various ecosystem services and overall conditions of environment. Despite of the fact that indirect damages could be far greater than direct ones, in most of the cases in Bosnia- Herzegovina, they are not included in the assessment of the damages and methodology for their calculation is not developed yet. The goal of this paper is to conduct the economic valorisation of direct and indirect damages from forest fires at the territory of Prozor-Rama municipality in 10-years period in which the scope and frequency of the forest fires were determined. The methodology that is used in this paper is developed by European experts on assessment of socio-economic damages from forest fires in Europe (PETTENELLA et al, 2008). Formula for calculation of damages of some functions and values of forests are partially modified due to the specific conditions of forest management practice and characteristics of forest stands, while some of them were excluded from assessment since they required additional research for their valuation. Calculated values of the damages are 11 times greater than those that are presented in the Register of the damages from forest fires of the Public Forest Enterprise „Šume Herceg-Bosne“. Modified method could be a sound basis for development of methodology for assessment of the damages from forest fires and total economic valuation of forest ecosystems in Bosnia-Herzegovina.

Background and purpose: Caused by appearance of new stakeholders and diversification of their interests towards forests, different forest-related conflicts emerged worldwide. As a country with economy in transition and relatively young democracy, Bosnia-Herzegovina might be suitable for understanding the roots, actors and varieties of these conflicts. This paper deals with the most frequent forest-related conflicts, main actors involved as well as undertaken actions in order to manage them in Bosnia-Herzegovina. Materials and methods: The theoretical framework is based on the Conflict Management Progress Triangle consisting of three dimensions of conflict: substance, process and relations. As particular focus in this paper is given to conflicts between forestry and wood-processing industry, the primary parties in this study were public forestry companies and wood processing companies. For the purpose of this survey a special questionnaire has been designed. The survey population included the most important actors of forest and wood-processing industry as follows: ministries of forestry, nature protection and physical planning at all levels, managers/owners of wood-processing companies, managers of public forest companies and public forest administration, representatives of the most important environmental NGOs and professional associations, managers of protected areas and water management authorities, heads of forest research institutions, economy of chambers and international institutions. In total 136 questionnaires were collected, out of which 68 respondents identified conflicts between forestry and wood-processing industry as the most important ones. Discussion and conclusions: The results show that the main causes of these conflicts are: differences in demand and supply of wood assortments, way of selling of wood assortments (including quantities and delivery dynamics) as well as wood assortments prices. As the most prominent action among the undertaken ones to manage the conflicts, the respondents underlined adoption of criteria for transparent selling of wood assortments. The results of this paper might be useful for both, public forest companies and wood-processing companies. Timely identification and implementation of possible solutions in order to overcome the most pronounced conflicts would increase competitive advantages for both sides.

Private forests in Slovenia and Bosnia-Herzegovina are important resources for national economic development. Based on differences in the proportion of private forests, the countries differ substantially with regard to the role of private forest owners, as well as the conditions of owner interest associations in the forest policy processes. Since private forest owners are so diverse, there is a need to better understand their expectation for interest associations. Surveys were conducted in 2008 on random samples of private forest owners in Slovenia and Bosnia-Herzegovina to examine the factors affecting their expectations. The study examined seven categories of expectations: silvicultural advice, harvesting advice, information about timber markets, information about legal regulations, information about strengthening entrepreneurship, support of forest road construction/maintenance and forest management training. Seven models were developed to examine the factors affecting each category of expectations. The results reveal that socio-demographic characteristics of private forest owners, ownership structure, and property conditions were associated with expectations. Three models (silvicultural advice, strengthening entrepreneurship and support of forest road construction/maintenance) were statistically significant in both countries. The strongest factor that influences the expectations for Slovenian private forest owners was education while in Bosnia-Herzegovina it was property size. Gender did not influence expectations of private forest owners in either country. Understanding the underlying factors influencing private forest owner expectations could aid in developing appropriate forest policy instruments to support owner cooperation within interest associations and improve private forest management. K e y w o rd s : private forests, interest associations, private forest owner expectations, Slovenia, Bosnia-Herzegovina Š. Pezdevšek Malovrh, D. G. Hodges, B. Marić, M. Avdibegović: PRIVATE FOREST OWNER EXPECTATIONS ... Šumarski list br. 11–12, CXXXV (2011), 557-566 558 METHODS OF RESEARCH – Metode Istraživanja and legal matters to European standards, including forestry. Due to the fact that more than one-half of Europe’s forests are privately owned, significantly contributing to wood supply, private forest ownership has a central position in almost all European forest policy debates (S c h m i t h ü s e n and H i r s c h , 2010). The long period of centrally planned economies in South-East European countries hindered the development of scientifically-based knowledge on private forest issues. During the period of socialism, private forests largely were unattended and even abandoned by both national forest policy makers and forest owners. With political change and the associated processes (e.g., privatisation, restitution, denationalisation), private forest ownership now is an emerging topic in national forest policy. At the same time, the complexity of international forest policy processes resulted in new modes of forest management in which private forests owners are mobilised as a very strong interest group at the national and international levels. The demands of society on forests, including those in private ownership, are changing rapidly, increasing the urgency for improved forest conditions. Thus, the formation of interest associations is one among the solutions for private forest owners but also a logical reaction to the increasing societal demands on private forests. However, private forest owners have not established interest associations in some South-East European countries; their fate still rests mainly with public forest administration. This is not in accordance with Pluralistic theory, according to which interests groups are reflection of the society with the various interests of its members (Tr u m a n , 1951). This theory also does not explain why private forest owners are not organized in these countries. According to the Theory of Collective Action (O l s o n , 1965), rational behaving individuals support an organisation that works for the interest of its members. On the other hand, if the number of potential members (in this case private forest owners) is very large, individuals behave quite rationally if they do not join interest associations – they simply benefit as “free riders”. The phenomenon of membership in private forest owner interest associations and particularly the expectations that members have from such associations is a core research problem discussed in this paper. Compared to central and western Europe, few studies have addressed this problem in South-East European countries. A number of analysts have compared private forests in several European countries, presenting different aspects of private forest ownership, management, and policy, including the issue of private forest owner interest associations (G r a y s o n , 1993; N i s k a n e n and V ä y r y n e n , 2001; H i r s c h et. al., 2007; H ä g g l u n d , 2008; S c h m i t h ü s e n and H i r s c h , 2010 ibid.). More recently, several authors have explored the issue of private forest owner associations in South-East European countries, including the preconditions for establishing independent interest associations and member expectations (P e z d e v š e k M a l o v r h et. al, 2011; N o n i ć et. al, 2011; Av d i b e g o v i ć et. al, 2010a; Av d i b e g o v i ć et. al, 2010b; G l ü c k et. al, 2010a; G l ü c k et. al, 2010b, P e z d e v š e k M a l o v r h et. al, 2010a; P e z d e v š e k M a l o v r h , 2010b; M i l i j i ć et. al, 2010; P e z d e v š e k M a l o v r h , 2006; P e z d e v š e k M a l o v r h , 2005). Nevertheless, a significant lack of knowledge on private forest ownership persists in these countries, particularly knowledge gained from comparative studies. Specific deficiencies in previous studies include understanding the expectations of private forest owners regarding interest associations (e.g. advices, services, lobbying etc.) and the socio-demographic characteristics affecting their expectations. Private forests are important resources for national economic development for both Slovenia and BosniaHerzegovina, particularly in rural areas. Based on the differences in the share of private forests (roughly 70 % of all forests in Slovenia and only 20 % in Bosnia-Herzegovina), the experiences with private forest owner associations are quite different. Slovenian private forest owners are relatively well organized by associations, while private forest owners in Bosnia-Herzegovina are poorly represented in national forest policy deliberations due to the lack of independent interest associations. Comparing the demands of private forest owners on their interest associations in Slovenia and Bosnia-Herzegovina can offer important information for key national forest policy actors, public forest administration, and private forest owners (particularly in Bosnia-Herzegovina). Thus, the purpose of this paper is to identify the expectations of private forest owners for their interest associations in these two countries as well as understand how socio-demographic characteristics, ownership structure, and property conditions affect these expectations. Similar quantitative surveys were administered to private forest owners in Slovenia and Bosnia-Herzegovina with some variation to account for country-specific conditions. The surveys questioned owners about a range of issues related to private forest owners and management: gender, age, education, ownership structure, property size, fragmentation, harvesting activities, and expectations of their interest associations. The data were obtained from personal face-to-face interviews with randomly selected private forest owners. The surveys were conducted with some basic sample design concepts: Š. Pezdevšek Malovrh, D. G. Hodges, B. Marić, M. Avdibegović: PRIVATE FOREST OWNER EXPECTATIONS ... Šumarski list br. 11–12, CXXXV (2011), 557-566 559 – Because the majority of private forest owners in Slovenia and Bosnia-Herzegovina neither play an important role in national forest policy processes nor have a strong economic interests in managing their forests, the target population consisted of all private forest owners, not only the so called “active” ones. – Personal data about private forest owners (name, address, attributes of their property, etc.) were identified from the Land and Property Register in Slovenia and from local forest authorities in Bosnia-Herzegovina. – Sample size was adequate to achieve a 5 % sampling error at the 95 % confidence level. A systematic random sample was developed for the entire private forest owner population of Slovenia, although the primary focus was on selected forest ma na gement units of the Slovenian Forest Service where private forest owner associations exist. In order to identify 690 owners for interviews, owners were divided in strata according to property size (up to 0.99 ha, from 1 to 4.99 ha, from 5 to 9.99 ha, from 10 to 29.99 ha, and more than 30 ha). The sample within strata was dis proportionate to the property structure of Slovenian private forests (Forest management plans for regional units 2000–2010). Within each stratum, owners were divided into two groups of equal size: owners who were members of interest associations and those who were not. The questionnaire was pre-tested in 2007 and the survey was conducted from May 2008 through May 2009. The sample used in the analyses consisted of 322 owners, or a response rate of 46,6 %. (P e z d e v š e k M a l o v r h , 2010b ibid). The random sample for the door-to-door survey in Bosnia-Herzegovina was drawn from overlapping areas with the highest percentage of forest areas and the highest share of private forests. This ensured that the bulk of private forest owners were included. All municipalities in Bosnia-Herzegovina were ranked by these two criteria, so the most representative municip

7Massive fires in Indonesian peatlands in the 1990s and in eastern Russian peatlands in 2002 and last year have highlighted the need to manage forests overlying peat deposits, as well as converted peat forests and open peatlands. Peat or peaty soils, contain 65% or more of partially decayed vegetation, can burn freely or underground. They cover some 10 percent of worldwide forests and contain 25 percent of all terrestrial carbon. Recent massive greenhouse gas (GHG) emissions from fires in forested peat and peatland in Indonesia and in Russia highlight the need for policies to reduce GHG emissions. We discuss major peatland areas and quantify their carbon stocks and potential GHG emissions. Trends show that year-to-year emissions are variable, with huge pulses that are a significant share of global GHG emissions. We group suggested policy options into three approaches. The first approach, which will reduce peat-related product demand, includes a) restricting peat, and products produced on cleared forested peatland, from being labeled or counted in GHG reduction achievements, as renewable (which palm oil currently is considered); b) developing full substitutes for horticultural peat (comprising about half mined peat use); and c) developing renewable power in countries still dependent on peat for power generation. These options reduce the rate of developing newly mined peat/forest areas. Options for a second approach, which treat already drained and cleared forested peatlands, are: d) restoring functioning peat ecosystems by closing drainage ditches, allowing natural rewetting, and “seeding” with peat vegetation fragments, e) requiring current peat operators to restore mined areas right after all peat is removed, and f) converting them to other land uses, despite the acidic conditions of mined peat bogs. These options sharply reduce risks of peat fires. Finally, a third group of policy options reduces ignition risks and limit fire spread: g) developing monitoring, suppression techniques, h) organizing local landowner protection groups and i) improving public fire organizations.

UDK 630*92:519.237.8(497.6) According to FAO, the total forest area in Bosnia-Herzegovina amounts 2.709.769 ha or 53,4% of overall state territory. While the total area of private forests is 523.437 ha, private forest ownership is characterized by huge number of small-scale and fragmented individual estates. The aim of this research is to examine how the groups of private forest owners can be created with different clustering methods, regarding different criteria. The data presented in this paper are obtained from PRIFORT project (Research into the Organizations of Private Forest Owners Associations in the Western Balkan Region). Results show that private forest owners in Bosnia- Herzegovina can be grouped in three clusters by using different clustering methods, based on criteria defined in advance. Significant differences in willingness of private forest owners (PFO) to join to their interest associations are noticed for identified clusters. From forest policy aspect, the clusters gathering homogenous groups of private forest owners should be treated by different policy instruments (regulatory, economical or informational) in order to ensure better contribution of private forests to overall economical, ecological and social outcomes expected from forests as the most important natural resources in Bosnia-Herzegovina.

UDK 630*93:502(497) Within last few years, all Western Balkan countries have adopted new forest legislation aiming to introduce internationally accepted concepts of forest management. Due to specific social, political and economical realities that these countries have passed through, a number of nature protection regulations have been integrated into forest legislation. This paper compares nature protection regulations in Laws on Forests in Croatia (2005), Federation of Bosnia and Herzegovina (2002) and Serbia (2010). It examines differences and commonalities in above mentioned Laws. Furthermore, the paper analyzes the level of consistencies between Laws on Forests and Laws on Nature Protection in Croatia (2005), Federation of Bosnia and Herzegovina (2003) and Serbia (2009) in terms of “openness” and “greening” of forest related legislation. The results show that protection regulations within forest legislation, particularly those referring to forests with special management regime, can be strengthened by introducing the concept of high conservation value forests (HCVF). This concept includes also strategic changing of forestry sector position - from an inferior towards more proactive role in nature protection dialogue. The results of this paper can contribute to further improvements of current countries’ forest related legislation in domain of analyzed issues as well as creation of consistent forest and nature protection policies aimed at fostering cross-sectoral dialogue and cooperation.