ABSTRACT
Forest economics research should be designed to improve understanding of social forestry, watershed management, and non-timber forest outputs; and enhance ability to effectively address environmental consequences of forestry development. Forest economics research can contribute much to the economic and social well-being of developing nations. A focused program of forest economics research can be of substantial value to the forestry needs of the developing world. The primary focus of international support for forestry development through the mid-1970s was industrial forestry. A dramatic shift has occurred toward investment in social forestry and watershed management. International aid to developing nations is often subject to substantial criticism. Opponents argue that such aid distorts economic incentives, fosters dependency on outside capital and advisors, concentrates economic power, and leads to adoption of senseless economic policies by government. A number of questions concerning the effectiveness of aid in a forestry context can be posed.
