Economics, Trade and Incentive Measures

If communities are to be willing, and economically able, to involve themselves in sustainable forest management they must receive greater economic benefits from conserving forests than from degrading them. Sustainable forest management must tangibly improve local economic welfare, and generate local economic benefits to sufficient levels and in appropriate forms to counterbalance the opportunity costs incurred by sustainable forest management.

There is generally little recognition by either economic or forest sector decision-makers and planners of the high economic value of forest resources for communities, or the potentially high local economic costs of sustainable forest management.

The contribution of the forest sector to national economies is generally underestimated as a result of emphasis only on formal wood-based industries and omission of consideration of the value of non-timber products and functions.