Contribution of forests to rural inequality reduction: present scope and future options for rural development and sustainable use of forests

Abstract

Sustainable forest management initiatives in Pakistan have had poor outcomes, as the policy makers in the forest sector have rarely considered households' economic dependency on natural forest and its role in household welfare. This paper empirically analyses this issue using a dataset collected from interviews in three regions in northwestern Pakistan, with a total of 180 observations. Our findings reveal that 59% of households derive their income from the forests. Other factors, such as household size, alternative sources of income, literate adult males, distance to market, distance to forest and geographic location affect household economic dependence on the forest. Results from Gini coefficient and Lorenz curve analysis prove that supplemental forest income helps in reducing economic inequality among the sample households. The study suggests that forest income supplements total household income and reduces economic inequality. Thus sustainable management of natural forests is not only important for ecological but also for economic and social sustainability, especially in remote and marginal areas. Successful future forest policies for ensuring economic and ecological sustainability should target programmes that ameliorate current extraction pressure on natural forests, promote alternative income sources, build human capital, improve market access and ensure equitable access rights to forest resources for communities living in the uplands. This may improve socio-economic conditions of poor forest communities, thereby reducing income disparity. Overall, this would help in achieving sustainable forest utilization and management.

Keywords:

• developing countries
• forest resources
• Gini coefficient
• income inequality
• sustainable use

Acknowledgements

The authors thank the people of the three forest communities in northwest Pakistan for their assistance and cooperation during data collection. We also thank two anonymous reviewers for their valuable suggestions on an earlier draft of this paper. Thanks also to Ms Yovnne Scherrer and Sebastiaan Stiller for their valuable suggestions. The financial support offered by the German Academic Exchange (DAAD) is highly appreciated.

Notes

1. Pakistani currency, US$1 = 79 Pakistani rupees on 2 January 2009.

2. A local ethnic group who are shareholders in the forest are mostly landowners.