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    There are numerous consequences due to illegal logging and illegal activities in the forestry sector. Revenues lost by governments caused by illegal logging results in decrease of their ability to invest in the forestry sector. This has an effect on poverty levels, primarily because of the revenue lost by governments. As a result, this reduces their financial capability as well as the programs that could be implemented to help the poor.

    Moreover, poor people are not in a position to influence political bodies. This keeps them from accessing the forest resource. Finally, the resource's low cost contributes to an increase in waste and provides very little incentive to buy timber harvested from forests managed in a sustainable manner. Inadequate forest law enforcement and governance in other countries can also threaten sustainable forest management.

    As for the direct negative consequences of illegal logging on the wood products industry, their effect is to simultaneously increase harvesting and increase the availability of timber, thus lowering the price for producers. The price decrease suffered by producers can lead to unfair competition, thus reducing the profitability of legal companies. Illegal logging is a disincentive to sustainable forest management. The illegal timber trade threatens not only the viability of legal trade, but also its reputation.

    Despite the negative impacts, some stakeholders might benefit from illegal forest activities, such as consumers who could benefit from lower prices and national industries that could increase their competiveness by having access to lower timber prices. Several initiatives have emerged to combat illegal logging and illegal activities in the forestry sector. Among them, it is important to mention the policy statements issued by wood producers' associations, government initiatives which range from procurement policies to the signature of memoranda of understanding between countries, and the procurement policies of major do-it-yourself centers.

    Other more practical solutions are being put forward to reduce illegal logging and trade. Some of those solutions relate more to timber trade. There is no doubt that forest certification is seen, for some, as a tool, among many others, that enables control over the illegal wood trade, especially when it comes to the chain of custody. Also, there are other methods presently used or put forward to help combat illegal logging and illegal trade. They include log tracking systems, legality license based verification systems such as labeling, private and public procurement policies, international cooperation and coordination on trade statistics, information exchange on illegal logging and illegal trade, and study of possible trade-relate measures.

Adapted from UNECE

Based on the passage, it can be hypothesized that ____.