Abstract
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.
Highlights
Since the 1990s, Nepal has seen substantial growth in community-managed forest enterprises (CFEs), those focused on non-timber forest products (NTFPs),1 such as medicinal and aromatic plants (MAPs)
Given the fact that the user groups (UGs) is the investment partner in CFEs, how do CFEs leverage the various types of enabling and asset investments needed to support startup, operation and profitability within the context of prevailing regulatory and non-regulatory factors? The analysis presented is based on both primary data from 12 selected CFEs, as well as secondary data from published, government, and gray literature
The roots of CFEs lie in Nepal’s forest rights devolution that began in the late 1980s, spawning various types of community-based forest management (CBFM) institutions
Summary
Asia Network for Sustainable Agriculture and Bioresources Buffer Zone Buffer Zone Community Forestry Buffer Zone User Group Community-Based Forestry Management Community Forestry Community-Managed Forest Enterprise Community Forest User Groups Center for International Forestry Research Department of Cottage and Small Industries District Forest Office Environmental Impact Assessment Federation of Community Forestry Users, Nepal Forest and Farm Producer Organization Federation of Nepalese Chamber of Commerce and Industry Forest Stewardship Council Government of Nepal International/Non-Governmental Organizations Initial Environmental Evaluation International Union for Conservation of Nature Locally Controlled Forestry Leasehold Forestry Medicinal and Aromatic Plants Micro-Enterprise Development Programme Ministry of Forests and Environment Multi-Stakeholder Forestry Program Non-Governmental Organization Nepalese Rupee Non-Timber Forest Products Operational Plan Small- and Medium-Scale Forest Enterprise Small-Scale Forest Enterprise User Group Village Development Committee v
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