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Policy study on financial sustainability of CBFM

by Portal Web Editor last modified Jan 10, 2013 09:10 AM
Contributors: Juan Sève

This study analyzes the economic and financial viability of three community-based forest management (CBFM) projects in the Philippines. Land area under the three case studies range from 8,200 to 59,000 ha and were previously managed by private companies under Timber License Agreement contracts. The forests have harvestable volumes of between 50 and 75 m3/ha. Apart from timber, the other major use of the forest is rattan collection, which is over-harvested in all three areas. The large majority of the population practices upland farming. The author concludes that previous financial and economic analyses were conducted with the purposes of satisfying a formal requirement, rather than as a tool for preparing management decisions and as such, there are many methodological flaws. A set of generic outlines covering detailed cost structures and major revenue components is provided in Annexes 1 and 2 of the report. The following were listed as necessary conditions for CBFM financial sustainability, and provides options for future action: Transparency of policies and policy dialogue between government agencies and community organizations; Balance between the objectives of economic efficiency and social equity; Introduction of appropriate technology and value-added options for timber extraction and wood processing; R&D programs on residual forest management and upland agriculture, and provide continuous technical assistance to CBFM projects; Clear tenure arrangements; Access to markets and credit; Strengthened managerial skills of community organizations and require managerial and financial discipline on the part of the community organizations; Cohesiveness of community institutions.

Author(s): Juan Sève

Publication Date: 1995

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