Two decades of community forestry in Nepal: What have we learned?

Two decades of community forestry in Nepal: What have we learned?
Analysis of the harvesting regime of 178 cluster CFUGs indicate that there is an
increased trend of the harvested timber both in terms of the number of groups
and the volume of timber In 2006, 120 CFUGs harvested 85,758 cubic feet (some
2,428 m³), whereas in 2010 the number reached 150 CFUGs, which collectively
harvested 174,337 cubic feet (some 4,936 m³) timber. Nevertheless, harvesting
rates still fall well below prescribed allowable cuts, indicating that CFUGs are more
conservative than the Department of Forests.
In conclusion, much experience and many lessons have been generated from
NSCFP’s support for forest-based enterprises. The challenges in each value chain
are different, although there are common threads. One is the diffi culty of breaking
into markets that are already well controlled by existing companies. A more
fundamental and critical one is the offer of local wage labour opportunities - always
seen as an important aspect of being pro-poor, with the disadvantaged having
priority. Figures indicate that DAGs took up nearly 20,000 days of employment
in NSCFP-supported forest-based enterprises in the fi scal year 2009-2010. Yet
for three districts, this is small amount. Rather than simply generating paid labour
opportunities, the real challenge has proven to be the generation of jobs that pay
well, regularly and reliably, and thus allow those concerned to work with dignity.
Given that alternative options exist (especially out-migration), until forest-based
enterprises can offer good employment conditions they will tend to struggle in
meeting their labour needs. Finally, there are many policy issues – evidenced by
obstructive rules and regulations – that effectively inhibit opportunities for CFUGs
to establish viable commercial enterprises. General forest policy issues are
discussed n the fi nal section.
Key issues for the future
• Whilst the tripartite arrangement of enterprises in which shares are held by the
identifi ed poor, CFUGs, and private investors did not prove highly successful in
all cases, the concept of promoting equitable enterprises remains valid. Future
efforts should focus on promoting business partnerships between CFUGs
and private concerns, with a professional manager employed to take daily
management decisions, and strategic decisions taken by a representative
board of directors. The directors should also be aware that the payment of
dividends to CFUG members as soon as possible after establishment is a
crucial factor in establishing a sense of ownership in the enterprise.
• Focusing on specifi c value chains is essential to understand the intricacies of
supply and demand. Through this understanding, decisions can be taken on
which interventions where along the chain hold greatest potential to increase
profi ts for the CFUGs. Using this lens, particularly opportunities for the poor
and disadvantaged can also be identifi ed.
• The maximisation of commercial opportunities for CFUGs should be a
clear policy priority. With this, there should be a thorough assessment and
re-writing of the numerous rules, regulations and other obstacles currently
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