Capital formation and sustainable community forestry in Nepal

Abstract

This article investigates the role of capital formation in contributing to the sustainability of community forestry in Nepal, using a case study approach based on 23 forest user groups (FUGs). FUGs were classified in 3 categories on the basis of cluster analysis: (1) successful, (2) moderately successful, and (3) unsuccessful clusters. The results show that the elements of capital accumulation in a successful FUG were manageable mature forest, high prices for forest products, a system of charging for all forest products, and sales of surplus forest products outside the FUG. The results also suggest that the benefits of funds, community development, and forest improvement changed people's vision and behavior, as well as their attitude toward and understanding of community forestry. This change in attitude has increased interest in and awareness of community forestry and has stimulated thinking about the sustainability of community forestry. Local initiative of this sort makes community forests more secure, protected, and wisely managed for sustainable development.