Illegal logging and illegal trade of forest products continues to be a serious problem that not only contributes to the destruction of forest ecosystems, but also strips revenues from governments and local communities around the world and undermines pricing of legally harvested timber.

In this issue, David Price [Illegal Logging: Does Anyone Out There Care?] points out that the availability of black market timber is not on the decline, but in fact appears to be growing. Fueling the practice is a burgeoning demand for wood fiber in countries such as Indonesia and China.

The problem is a big one not only in terms of deforestation, but in monetary loss. The World Bank estimates that illegal logging results in annual losses of $10 - $15 billion in developing countries.

In addition, according to “Illegal” Logging and Global Wood Markets: The Competitive Impacts on the U.S. Wood Products Industry,” a summary prepared by Seneca Creek Associates, LLC and Wood Resources International LLC, an economic analysis based on simulations from the Global Forest Products Model (GFPM) suggests that illegal material depresses world prices by 7% - 16% on average, and U.S. prices by 2% - 4%, depending on the product. In certain important markets, illegal material significantly affects the ability of U.S. producers to export.

So what can be done about it? Consider the main driver: money. Part of the solution must include measures to reduce the gap between the costs of operating illegally and those of operating legally. This should be at the forefront of the policymakers' agenda. Hiking costs for people playing by the rules may only provide further motivation for others to throw the rulebook out the window.

We also need to reduce the demand for illegal logs and timber products and replace it with demand for legally harvested products. This requires a method of identification throughout the entire chain of custody, which brings up the next challenge-corruption.

Corruption has to be the most difficult part of the equation to manage. It travels from the top of the hierarchy to the bottom. From government officials, to local law enforcement, to the guy falsifying log transport documents. To combat this, it has been suggested that specific types of international task forces and law enforcement agencies be formed to bypass local bureaucracies.

It shouldn't be inferred that my only concern about illegal logging stems from lost revenue. Most of you realize, as I do, that the consequences from deforestation and the destruction of forest ecosystems come with a price tag no one can afford. But working towards solutions to improve economic conditions in impoverished regions, implementing and rewarding harvesting programs that are geared towards sustainability, and making sure the costs for legitimate timber cutting and trading don't become prohibitive, will lend incentive to the growth of legitimate forest operations.

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