ECONOMIC ANALYSIS OF DRYLAND FOREST RESOURCES AND PARTICIPATORY MANAGEMENT IN ETHIOPIA

Abstract

Improving rural livelihoods in the one hand and conserving forest resources through apt management practices on the other hand, are the dual objectives of sustainable development. Sustainable and effective conservation and management of forest resources has become the focus of current international and local policy agenda like Reducing emissions from deforestation and forest degradation (REDD) and REDD+; and has compelled policy makers and researchers across the world to rethink on the existing forest resources management practices and explore alternative approaches that are effective in forest resources conservation. In many developing countries, participatory forest management (PFM) approaches have been implemented with dual objectives of ensuring sustainable forest management and improving rural livelihood. Yet, more effective policy towards PFM necessitates a better understanding of the economic value of forest resources to the local community and the factors responsible in collective forest management performance. This study is conducted in North Western Ethiopia, i.e., in the Amhara region, in the districts of Metema and Quara. The main objectives of the study are to examine the economic value of dryland forest ecosystem to the local community and to understand the factors that influence the performance of local people in collective forest management practices. Quantitative and qualitative data were collected through household surveys, group discussions, key informant interviews and literature reviews. To analyze the data, various descriptive statistics and econometric regression techniques have been employed. Crop cultivation, livestock rearing, non-timber forest products (NTFPs) collection, off-farm employment and transfer payments have been the main livelihood strategies adopted in the study area. The results show that the local community attaches a significant economic value to the sustainable management of the dryland forest resources of the area. The results also indicate that households are considerably dependent on NTFPs which constitute the second largest source of total household income. However, the level and pattern of dependency on these forest products varies across different socioeconomic groups; the poor being relatively more reliant on NTFPs than the wealthy households. The incorporation of NTFPs income in households’ total income account significantly reduces the measured level of poverty incidence and income inequality in rural areas. Households’ decision to engage in a given livelihood strategy is related to a number of socioeconomic, institutional and geographic factors. The result of our study reveals that various socioeconomic, institutional and geographical factors influence the dependence of households on NTFPs. Furthermore, the study has found that the performance of the PFM cooperatives depends on the key attributes of users, physical resources and institutions and these attributes explain best for the success of PFMs. Participatory forest management cooperatives that incorporate more rich and heterogeneous people in terms of ethnicity have shown lower performance. The results also reveal that participation in forest management activities is influenced by gender, age, education, regional provenance, income from NTFPs, access to extension service, and implementation of forest management plan. For successful PFM program outcome, the following strategies could be considered in designing PFM arrangements: securing users’ right and empowering forest users through promoting active participation of vulnerable and marginalized people (poor, women and migrants), increasing incentives of the PFM program, conducting capacity building measures for various stakeholders, and enforcing the proper implementation of PFM plan to enhance good governance and ensure equitable benefit-sharing. The study further suggests that both rural development and forest conservation strategies should take pro-poor forest-related activities into consideration for achieving better outcomes in terms of forest conservation and improved livelihood.