tool, which is called “Proceso de Mejoría del Clima de Negocios para Inversiones en el Sector Forestal”
(PROMECIF).
Upon closer examination of the IAIF methodology, a number of questions and concerns arise such as the different
factors are weighted for the individual sub-indices. Investments in the forest sector are usually made long-term;
therefore, macroeconomic conditions and performance appear to be crucial to a particular country’s decisions,
especially in the case of political stability. Consequently, more equal weighting may better reflect this. Another area
of concern is that several indicators, which are related to country size, are calculated based on linear functions. The
consequence is that differences within small countries, though important in relative terms, are not reflected in the
IAIF. An example of this is the vocation forest land and domestic markets indicators. A solution to this problem
could be to replace the linear function with logarithmic ones, which would allow for better measurement of the
differences, as well as the changes, in small countries.
Finally, it is important to mention that the IAIF is a very good start to bring more attention to our region’s forest
sector. In addition, it can help improve business climates and consequently provide economic incentives to reduce
undesirable situations, such as deforestation.
Convention