Contribution of Forestry to Poverty Alleviation - APFNet

from poor and marginalized families educational support, as being implemented by the
Basanta Hariyali CFUG of Dang District.
4. Good governance: Community forestry is providing not only economic benefits to the
rural poor people, but also a venue for them to participate in forest management. CFUG
members are more responsive, and funds are being used in a transparent way. Participation
and representation among women and the poor have been increasing over time. However,
their election into leadership positions remains low.
General Recommendations
1. It is apparent that most of the firewood, timber, fodder and NWFPs are used by local
people but are not sold. This needs to be also accounted in the present calculation of the
economic contribution of the forestry sector. This would increase the contribution of this
sector to poverty reduction significantly. Until today, the government has not done such
calculation for defining forestry sector contribution to poverty reduction. The depletion of
forest resources is also ignored both in physical and monetary terms. The study identified
these deficiencies in the current national income and forestry accounting framework.
2. It is easy to calculate the value of timber, fuelwood, fodder and other forestry products
that are directly used and marketed locally and internationally. However, for non-marketed
forestry products such as fodder, leaf litter, firewood, and unofficial trade of NWFPs, one
needs to account market substitution or willingness to pay methods for valuation, which is
lacking in the valuation of existing statistics of the government.
3. Other economic contributions such as stone and sands from forests, forest-based tourism/
trekking, timber-based industry, eco-benefits, bio-fuels, water recharge due to forestry,
carbon sequestration and oxygen release by trees need to be considered in the calculation
of overall contribution of the forest sector to the national economy (i.e., GDP).
Site Specific Recommendations
Sites I and II: Community Forestry Initiative
1. The issue on income inequality between the rich and the poor needs to be addressed by
providing more space and access rights to poorer households. The provision of allocating
35% of CFUG income to identified poor households should be strictly enforced by the
CUFGs to be monitored by the government.
2. Leasehold forestry concept should be integrated into or implemented within community
forestry to provide more access rights to poorer communities.
3. Gender and social inclusion strategy should be effectively implemented by ensuring
participation of at least 50% women and disadvantaged members in the CFUG committee.
Site I: Commercial Forestry Initiative
1. The small business which the freed bonded laborers started two years ago with some capital
investment has currently generated some capital including equipment, raw materials and
work place. However, these people are not self-sufficient in running the sawmill business
with such a small investment. Therefore, it is recommended that access to loans for poor
and deprived people for forest-based commercial activities be supported.
2. Business skills training is needed for local people who are involved in forestry enterprises.
Site II: Leasehold Forestry Initiative
1. It is evident that the handing over of small and degraded plots to poor households is not
cost-effective in many ways. This has increased work burden to poor members. This needs
to be re-assessed and alternatives should be explored. There should be a provision in the
law that the productive forests can also be handed over to poor people. However, in this
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