Stakeholder Incentives in Participatory Forest Management: A Manual for Economic Analysis

This manual provides practical methodological guidance for the economic analysis of stakeholder incentives in participatory forest management (PFM) situations. It stems from the concern that poor understanding has contributed to the often weak local participation in PFM, and therefore the limited success of many PFM experiences. The manual will help governments, NGOs and donors identify appropriate interventions to encourage participation. While the manual is primarily oriented to economists working in a range of organizations, it also aims to make economics more accessible to a wider audience promoting PFM.

The first part involves an introduction to economic concepts applied to PFM. The second and main section is the Economic Stakeholder Analysis (ESA) toolbox. The tools are organized in six main ESA stages covering characterization of the stakeholders; understanding the decision-making context; physical quantification of costs and benefits; valuation of the costs and benefits; economic comparison of the decision-making alternatives; and participatory analysis and monitoring. An important aim in the ESA framework is to integrate economic analysis with other decision-making criteria. The manual is user-friendly with clear signposting, boxes, tables, figures and examples. It is an excellent tool for government organizations, NGOs and donors involved in participatory forest management.