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Hills Leasehold Forestry and Forage Development Project

07 December 2003

Interim Evaluation

The direct transfer of assets to the poor is an innovative approach to poverty alleviation. Aiming to solve the problem of common access to forest areas, 40-year leases give 1,800 household groups user rights over plots of degraded forest land totalling 7,400 hectares.

Once restored, the forest areas are a rich source of fodder, timber, and fuel as well as trees and plants that the groups use and sell. Goat ownership has increased from an average of two to five per household, as has revenue from goat sales (to US$ 100 per household per year). Income from grasses, grass seeds and other forest products is now significant (up to US$ 70 per household per year). Yet, weak market linkages and inadequate information concerning demand and market prices have limited sales in some areas.

The 120 leasehold inter-groups and 18 multi-purpose cooperatives created during the project have been instrumental in tackling these issues due to their strong bargaining power and success in creating market outlets. These grassroots organisations need further strengthening to ensure long term sustainability, however.

Future initiatives also need to pay greater attention to local traditional knowledge concerning land management, plants and animal husbandry and to involve user groups in research and decision-making processes.

Breaking New Ground: Leasehold Forestry in Nepal (Issue #18 -2004)

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