Analyzing The Investment Effects Of Forest Rights Devolution In Nepal S Community Managed Forest Enterprises

Forest rights devolution in Nepal from the late 1980s created different types of community-based forest management institutions, in particular community forestry user groups. Effective forest regeneration led to a new focus on entrepreneurial opportunities for improving livelihoods and social equity, resulting in considerable if unstable enterprise growth. Employing the concept of enabling and asset investments, the study examines how user groups have established and managed forest-based enterprises, taking account of regulatory and non-regulatory factors. The study is based on primary data from interviews with 12 community-managed forest enterprises as well as secondary data from the published, government and grey literature. In light of the high export demand for non-timber forest products from India and elsewhere, there has been gradual policy support for enterprise development from the government. Enabling investments by the government, donors and non-governmental organizations have built momentum and contributed to success. Forest-based enterprises have the potential to change the face of Nepal’s rural economy. However, complex and poorly harmonized regulatory requirements have kept many community-managed forest enterprises in a state of informality and unable to attract asset investment. An emerging second generation of community-managed forest enterprises can benefit from reductions in regulatory burdens and attract asset investments capable of overcoming current obstacles to growth.

Key messagesInvestment in commons comes primarily from donors, governments and communities, but private sector investment is increasing.Commons-based investment readiness is conditional on the level of assurance stakeholders have that the obligations of each party will be met. Investment readiness develops over time and in stages, as levels of assurance increase.Each sector has specific roles and responsibilities for mitigating risk.Community rights have fostered investment that recognizes the social character of commons ownership and delivers environmental and social returns, as well as profits.There is a need for additional research on the origins, mechanisms, volume and direction of investment in community-managed resources that can help communities and investors alike better understand their options.

Concern with deforestation in tropical regions is increasing and this book is a consideration of the social, economic and environmental issues, with special reference to the situation in Nepal. In its examination of the complex interactions of factors which affect the management of forests, this volume should be of interest to all those concerned with deforestation and its consequences.

Forest landscapes are inhabited by approximately 1.5 billion people. The aggregate gross annual value of these smallholder producers approaches US$1.3 trillion. Adding value to that production, through financial investment, will be key to delivering the Sustainable Development Goals (SDGs). Therefore, access to finance is an important issue. The Forest and Farm Facility (FFF) commissioned this scoping paper to assess what might be done to improve access to finance. Organisation of forest and farm producers allows finance to be channelled toward valueadded investments. But the motivation to form forest and farm producer organisations (FFPOs) varies with context, from the desire to secure resource rights for Indigenous peoples in the forest core, to the desire to strengthen economic scale efficiencies in periurban forest product processing industries. The scale and type of finance needs vary and span enabling investments (grants or concessional loans)through to asset investments (market-rate capital that requires a return). Access to finance for FFPOs requires tailored approaches. For FFPOs, enabling investments in four key areas are needed to create the conditions and necessary track record to attract asset investment: (i) secure commercial rights; (ii) strong organisation for scale; (iii) appropriate technical extension; and (iv) fair market access and business incubation. Enabling investments of this sort make FFPO businesses bankable and affords them access to finance.

Nearly three years ago, world leaders agreed to the United Nations 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs) – the central framework for guiding development policies throughout the world. This edition of The State of the World’s Forests is aimed at enhancing our understanding of how forests and their sustainable management contribute to achieving several of the SDGs. Time is running out for the world’s forests: we need to work across sectors, bring stakeholders together, and take urgent action. The State of the World’s Forests 2018 identifies actions that can be taken to increase the contributions of forests and trees that are necessary to accelerate progress towards the SDGs. It is now critical that steps be taken to work more effectively with the private sector, and the informal forest sector must be transformed in order to bring broader economic, social and environmental benefits. Seventy years ago, when FAO completed its first assessment of the world’s forest resources, the major concern was whether there would be enough timber to supply global demand; now we recognize the greater global relevance of our forests and trees. For the first time, The State of the World’s Forests 2018 provides an assessment of the contribution of forests and trees to our landscapes and livelihoods. The purpose of this publication is to provide a much wider audience with an understanding of why forests and trees matter for people, the planet and posterity.

Research since the 1990s highlights the importance of tenure rights for sustainable natural resource management, and for alleviating poverty and enhancing nutrition and food security for the 3.14 billion rural inhabitants of less-developed countries who rely on forests and agriculture for their livelihoods. Which rights or combination of rights an individual, household, or community has affects whether they have access to land and resources, as well as how those can be used and for how long. Equally important is the degree to which landholders perceive their tenure to be secure. Landowners are more likely to engage in land and resource conservation if they perceive that the likelihood of losing their land or resource rights is low. Between 2013 and 2021, the CGIAR Research Program on Policies, Institutions, and Markets (PIM) supported researchers to explore the drivers of tenure insecurity and their consequences, as well as mechanisms that can enhance tenure security. Their work focused on rights held by individuals and households as well as collectively held rights. Studies found that tenure insecurity has a variety of negative consequences for natural resource management, agricultural productivity, and poverty reduction, but the sources of tenure insecurity differ for men and women, and for individual, household, and collective lands. Statutory recognition of customary rights, multistakeholder processes such as for land use planning, and organized social alliances such as Indigenous Peoples’ groups have emerged as important mechanisms for securing rights or enhancing access to collectively held lands. Long-term partnerships, ongoing engagement, and training for multiple actors at multiple scales increases the likelihood of successful implementation of tenure reforms. Further research on tenure security can contribute to achieving the Sustainable Development Goals, especially by clarifying how customary tenure can provide security and how tenure affects decision-making in multistakeholder platforms.