Communities and Forest Markets

This chapter explores the engagement of smallholders and communities with forest markets in the context of tenure reforms. Tenure reforms, in theory, should enhance these actors’ access to forest resources and thus improve the benefits accruing from commercial forest resources use. In practice, however, it is not that simple. On the one hand, markets for forest products can provide alternative sources of income streams for smallholders and communities. ¹ On the other hand, they may constitute a channel for the transfer of economic rents to other actors better positioned in forest markets. These two situations coexist to differing degrees. Most often, communities that choose to market their forest products, whether timber or non-timber forest products (NTFP), are able to generate cash income but often do not earn as much as expected because of benefit flows to traders, intermediaries and timber processors up the value chain and thus communities are often relegated to a role as raw material providers.