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quarrels with Maasai pastoralists who to an increasing degree have started grazingtheir livestock in and around Nyali.8.5.3 MasuguOur findings from Masugu have showed a dependency on large forest resources.Firstly, the agricultural output were the lowest of the villages, its location is close tothe road and Kilosa town, the land tenure rights are vague, it has experienced a highpopulation influx and the village is clearly heterogeneous. In addition, there areemerging conflicts with the Maassai over land. All these problems can be reflected inthe lack of a good, long enduring management system. It is important that the projectrecognises such challenging situations as something to be dealt with. If not, it canpotentially affect the projects overall outcomes. Equally important is that the projectshould recognise the many differences that exists within the village, based both onformal and informal institutions. However the unsustainable use of the forestresources in Masugu cannot continue for long, and as we saw that villagers in MasuguKati had already depleted their forest the same might occur within the forest inMasugu Juu if nothing changes.Since the village is located on former plantation lands a fear exists that someonecould come in and take the agricultural land they use now. To secure land tenure, istherefore greatly needed. However, implementing REDD will entail the exclusion of“outsiders”. In a village like Masugu where people are used to come in from theoutside, either to graze their animals (Maasai) or produce charcoal, this can createsome problems. The question then becomes if the community will be able to managea forest designated as a REDD forest. Households also have different capacities toparticipate.Another worry in Masugu is leakage. Due to its forest dependence and extensiveproduction of charcoal the opportunity costs are very high. For REDD to work, thepayments from REDD need to at least somewhat reflect the opportunity costs lost.Here, also improved enforcement of rules from the district plays a role. If no permitsare paid, the cost of production will continue to stay low, however with increased lawenforcement many might refrain from producing charcoal or extracting timber. Even274