“Now We Want To Manage It So That People Can Get More Benefit Out Of It” — Keshav Raj Kanel

November 26, 2004
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KESHAV RAJ KANEL, Division Chief of Community Forestry at the Department of Forest, is a well-known resource economist. Kanel spoke to SPOTLIGHT on various issue related to the community forestry. Excerpts:

How do you find the present situation of the Community Forestry?

Community Forestry is a program directed to the utilization of forest resources through the participation of local community. We are building democratically elected local institutions – which can work with local administrative system. Community forestry is a paradigm shift in conservation development. Initially, it was to create the natural resources. Now we want to manage it so that people can get more benefit out of it.

What was the priority of the first phase?

More than 1.1 million hectares of forest land (25 percent of the total land) has so far been handed over to over 13 thousand Community Forest User Groups, which constitutes around 35 percent of the total population of Nepal. Denuded forest areas have regenerated, the condition of the forest has improved, and the users themselves decide the level of forest extraction. Income from the sale of forest products is used in community development, and forest management activities are based on the decisions of the users themselves. In first phase, the aim was to create greenery in the hills, which was too much degenerated. We were successful in reviving the greenery in the region.

What are the challenges for community forestry?

The challenges lie in increasing the productivity of these forests, streamlining the benefits from forests towards livelihood promotion (particularly poverty alleviation), and strengthening good governance for equitable performance. The next stage of the program should be focused on livelihood promotion, good governance and sustainable forest management.

How do you see the support of various donors working in the community forestry?

Donors are very positive on community forestry program and they are proud to be a partner of Nepal’s successful program.

How much money do the CFUGs generate annually?

The total annual income from the sale of forest products from community forest is about Rs.747 million. Forest user groups consume a major portion of forests products – about 79 percent within the groups.

Where do the CFUGs spend their money?

Community development comprises the highest proportion of CFUG expenses (about 36 percent), which includes school support, road construction and other community infrastructure development. Operational cost is the third biggest area of CFUG’s expenditure. Although it is very low, CFUGs are spending three percent of their money on pro-poor programs. We can see that the CF program generates substantial income; the distributional effects of this program are being raised. Our studies have shown that the poor users. About 25 percent of national forest is now being managed by more than 35 percent of the total population of Nepal. Elected representatives or about 143 thousand committee members (of which 35 thousand are women) make day-to-day decisions about forests, funds, and other development activities. Their leadership capacity has substantially increased with the result that many of them have taken leadership positions in District Development and Village Development Committees.

How do you settle the issues related to distribution of resources generated by the Community Forest User Groups among local bodies, the government and community forest user groups?

Our Ministry considers that the sharing of revenue generated from Community Forest among the CFUGs, local political bodies and the government should be resolved through a consultative process.

What are your views on the evolution of community forest?

Community forest was legalized in 1978. Since then, it has evolved from protection forestry to institutional innovation with a strong focus on devolution of management authority to local communities organized and legitimized as a self governing unit. From institutional building to resources mobilization, one can see a lot of change in the sector. From managing small amount of resource, CFUGs are now managing huge amount of money. This is a major transformation. At a time when the country is focusing on poverty alleviation, the well-developed mechanisms of community forestry should be exploited to benefit large segment of the population.

Do you see any possibility to increase the income?

Community forests are generating substantial amount of forest products and income. There is also a substantial potential of further generating income from the better management of community forests. These funds can be better utilized to benefit the poor and marginal groups. There are multiple avenues of channeling resources through CFUGs in alleviating poverty in the rural areas of Nepal. CFUGs will be assisted to tap these resources for the benefit of poor and disadvantaged groups.