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Illegal logging  is the harvesting, processing, transporting, buying or selling of timber in contravention of national and international laws.

It is one of the largest environmental problems of the modern age. It causes huge carbon emissions, a loss of biodiversity, and destroys sensitive ecosystems to a point beyond repair.

Illegal logging. (n.d.). Retrieved January 11, 2021, from https://www.euflegt.efi.int/illegal-logging

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Apart from the numerous environmental consequences of illegal logging, it can also weaken the economy of poor countries. Illegal logging is said to lower the prices of world timber in the ranges of 7% to 16% annually, causing a global revenue loss of about 15 billion US dollars per year.

In poor countries, governments lose revenue from duties and taxes and other costs related to the management of illegal logging. Besides, the losses are not only in terms of current revenue but may also lead to major economic ramifications in the future due to the degradation of valuable natural resources.

Rinkesh (2020, May 13). Causes, Effects and Solutions to Combating Illegal Logging Globally.  Retrieved January 11, 2021, from
https://www.conserve-energy-future.com/causes-effects-solutions-illegal-logging.php#:~:text=huge%20volcanic%20eruptions.-,4.,billion%20US%20dollars%20per%20year.

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Important events that led to or caused it

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Important events that led to or caused it

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Rural Poverty

In the forest regions, there is always a rural community or indigenous people living within the locality. These communities or tribes are in most cases very poor and entirely depend on the forest for their needs and survival.

Illegal charcoal, furniture and timber trade

There is an increasing dependency on charcoal, furniture, and timber across the world. Charcoal is used for heating and cooking in most developing countries and those who engage in the trade illegally cut down trees which are then used to make the charcoal. High-density wood is often preferred to make high-quality charcoal, which means the illegal cutting down of hardwood trees.

Weaknesses and laxity in forest governance

Forest governance in producer countries very poor and the laws in place are lax at addressing illegal logging concerns. Limited resources, weak institutions, and lax laws have contributed to inadequate law enforcement and the lack of proper land use management. Furthermore, many countries have unclear and poor legal frameworks

Cheaper products in black markets

The economics of the markets globally equally plays a role in promoting illegal logging. The reason for this is that illegal timber is normally cheaper compared to legal timber in black markets thereby denying legal operators competitive advantage.

Rinkesh. (n.d.). What is Illegal Logging? Retrieved from https://www.conserve-energy-future.com/causes-effects-solutions-illegal-logging.php

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What are the consequences or bad and good benefits of it specifically in the production process?

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What are the consequences or bad and good benefits of it specifically in the production process?

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Illegal logging not only leaves an obvious mark of destruction on forests, but it also strips the economic livelihood of local communities and responsible companies.

Increased demand for forests products has brought some financial benefits for poor people living in or near forests. But there is also evidence to show that usually, poor communities who are completely dependent on forests lose out to powerful interests, logging companies and migrant workers who reap most of the benefits.

World Economic Impact
The World Bank states that the annual global market loses $10 billion annually from illegal logging, with governments losing an additional US$5 billion in revenues.

Lost revenue that may have been generated from legal logging of forests

Governments lose out financially; lost revenue from taxes and duties and the costs of efforts to manage illegal logging.

Pushes down the market price of timber, which acts as an incentive for other loggers to follow the same practice. This further increases losses to governments and starts a vicious cycle in the market.

Hart, J. (2015). Economic Impacts of Illegal Logging. Retrieved from https://prezi.com/cg8b7qee6g-8/economic-impacts-of-illegal-logging/

Illegal Logging. (n.d.). Retrieved from https://wwf.panda.org/discover/our_focus/forests_practice/deforestation_causes2/illegal_logging/

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Illegal logging has a lot of bad effects to the environment.The environmental effects of illegal logging include deforestation, the loss of biodiversity and the emission of greenhouse gases. Illegal logging has contributed to conflicts with indigenous and local populations, violence, human rights abuses, corruption, funding of armed conflicts and the worsening of poverty.

Illegal logging. (n.d.). Retrieved January 11, 2021, from https://www.euflegt.efi.int/illegal-logging#:~:text=The%20environmental%20effects%20of%20illegal,and%20the%20worsening%20of%20poverty.